Below are the short-run data of a representative firm in a perfectly competitive industry. The market price is $2.0, and you know that the firm is maximizing profits. What is the profit of the firm (rounded to one digit after the decimal point)? MC AVC ATC 1.0 1.0 1.50 2 1.2 1.1 1.35 3 1.4 1.2 1.37 4. 1.6 1.3 1.43 1.8 1.4 1.50 2.0 1.5 1.58 7 2.2 1.6 1.67 8 2.4 1.7 1.76 2.6 1.8 1.86 10 2.8 1.9 1.95 Example on how to interpret the numbers: The MC of the second unit (Q=2) is 1.2 O $0.4 O $2.0 O $5.0 O $0.5 O $2.5 O o o
Below are the short-run data of a representative firm in a perfectly competitive industry. The market price is $2.0, and you know that the firm is maximizing profits. What is the profit of the firm (rounded to one digit after the decimal point)? MC AVC ATC 1.0 1.0 1.50 2 1.2 1.1 1.35 3 1.4 1.2 1.37 4. 1.6 1.3 1.43 1.8 1.4 1.50 2.0 1.5 1.58 7 2.2 1.6 1.67 8 2.4 1.7 1.76 2.6 1.8 1.86 10 2.8 1.9 1.95 Example on how to interpret the numbers: The MC of the second unit (Q=2) is 1.2 O $0.4 O $2.0 O $5.0 O $0.5 O $2.5 O o o
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Below are the short-run data of a representative firm in a perfectly competitive industry. The market price is $2.0, and you know that the firm is maximizing profits.
What is the profit of the firm (rounded to one digit after the decimal point)?
MC
AVC
ATC
1
1.0
1.0
1.50
2
1.2
1.1
1.35
3
1.4
1.2
1.37
4
1.6
1.3
1.43
1.8
1.4
1.50
6
2.0
1.5
1.58
7
2.2
1.6
1.67
8
2.4
1.7
1.76
9
2.6
1.8
1.86
10
2.8
1.9
1.95
Example on how to interpret the numbers:
The MC of the second unit (Q=2) is 1.2
O $0.4
O $2.0
O $5.0
O $0.5
O $2.5
o o o o o](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcda088c9-9977-4070-bc21-e361e792a50f%2F8293d62a-3f15-4f4d-b0fb-eaaff498d1a2%2Fxi6bv9h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Below are the short-run data of a representative firm in a perfectly competitive industry. The market price is $2.0, and you know that the firm is maximizing profits.
What is the profit of the firm (rounded to one digit after the decimal point)?
MC
AVC
ATC
1
1.0
1.0
1.50
2
1.2
1.1
1.35
3
1.4
1.2
1.37
4
1.6
1.3
1.43
1.8
1.4
1.50
6
2.0
1.5
1.58
7
2.2
1.6
1.67
8
2.4
1.7
1.76
9
2.6
1.8
1.86
10
2.8
1.9
1.95
Example on how to interpret the numbers:
The MC of the second unit (Q=2) is 1.2
O $0.4
O $2.0
O $5.0
O $0.5
O $2.5
o o o o o
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education