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Explanation in words: The MC curve intersects the demand curve at Q-10. The MC curve intersects the ATC at Q-6. The AVC intersects the MC at Q=4. Market price is given as $8. The minimum of the AVC curve is $2 and is associated with Q-4. The minimum of the ATC curve is at $4 and corresponds to Q-6. ATC at Q-10 is $6. © 20 60 O0, the firm should exit the market 40

Explanation in words: The MC curve intersects the demand curve at Q-10. The MC curve intersects the ATC at Q-6. The AVC intersects the MC at Q=4. Market price is given as $8. The minimum of the AVC curve is $2 and is associated with Q-4. The minimum of the ATC curve is at $4 and corresponds to Q-6. ATC at Q-10 is $6. © 20 60 O0, the firm should exit the market 40

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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structure.com/courses/143893/quizzes/419021/take Use the figure below the calculate the economic profits when the perfectly competitive firm is picking the profit maximizing quantity. 6 4 2 20 60 OO, the firm should exit the market. 40 AVC Mi 10 Explanation in words: The MC curve intersects the demand curve at Q-10. The MC curve intersects the ATC at Q-6. The AVC intersects the MC at Q=4. Market price is given as $8. The minimum of the AVC curve is $2 and is associated with Q-4. The minimum of the ATC curve is at $4 and corresponds to Q-6. ATC at Q-10 is $6. MC Market Price =$8 ATC A ☆ Quantity
Transcribed Image Text:structure.com/courses/143893/quizzes/419021/take Use the figure below the calculate the economic profits when the perfectly competitive firm is picking the profit maximizing quantity. 6 4 2 20 60 OO, the firm should exit the market. 40 AVC Mi 10 Explanation in words: The MC curve intersects the demand curve at Q-10. The MC curve intersects the ATC at Q-6. The AVC intersects the MC at Q=4. Market price is given as $8. The minimum of the AVC curve is $2 and is associated with Q-4. The minimum of the ATC curve is at $4 and corresponds to Q-6. ATC at Q-10 is $6. MC Market Price =$8 ATC A ☆ Quantity
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