If the price of the good is 0.70$And the firm is producing 100 units what would the profit be-10515 Or 20 The graph illustrates the relationships between Marginal Cost (MC), Average Total Cost (ATC), and Average Variable Cost (AVC) in a production process. ### Graph Details:- **Vertical Axis (Y-Axis):** Represents the cost, ranging from 0.40 to 0.90.- **Horizontal Axis (X-Axis):** Represents the quantity of output, ranging from 0 to 400.### Curves Explained:1. **MC (Marginal Cost):** - Initially decreases, reaching a minimum point, and then increases sharply. - The MC curve intersects both the AVC and ATC curves at their lowest points, which is typical for these cost structures in economics.2. **ATC (Average Total Cost):** - Lies above the AVC curve. - It decreases over a range but eventually starts to increase as output rises, indicating spreading of fixed costs over more units initially and then rising due to variable costs.3. **AVC (Average Variable Cost):** - Below the ATC curve, starts higher, then slopes downward slightly before rising again. - Reflects changes in variable costs as production increases.### Key Points:- The intersection of MC with AVC and ATC indicates the minimum points of AVC and ATC, which is significant for understanding cost behavior in production processes.- The trends of these curves help in analyzing efficiency and the impact of different levels of production on costing.

Marginal cost alludes to the extra expense to produce each extra unit. Average total cost is the…

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If the price of the good is 0.70$ And the firm is producing 100 units what would the profit be -10 5 15 Or 20

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Question

If the price of the good is 0.70$ And the firm is producing 100 units what would the profit be -10 5 15 Or 20

The graph illustrates the relationships between Marginal Cost (MC), Average Total Cost (ATC), and Average Variable Cost (AVC) in a production process.

### Graph Details:

- **Vertical Axis (Y-Axis):** Represents the cost, ranging from 0.40 to 0.90.
- **Horizontal Axis (X-Axis):** Represents the quantity of output, ranging from 0 to 400.

### Curves Explained:

1. **MC (Marginal Cost):**
- Initially decreases, reaching a minimum point, and then increases sharply.
- The MC curve intersects both the AVC and ATC curves at their lowest points, which is typical for these cost structures in economics.

2. **ATC (Average Total Cost):**
- Lies above the AVC curve.
- It decreases over a range but eventually starts to increase as output rises, indicating spreading of fixed costs over more units initially and then rising due to variable costs.

3. **AVC (Average Variable Cost):**
- Below the ATC curve, starts higher, then slopes downward slightly before rising again.
- Reflects changes in variable costs as production increases.

### Key Points:

- The intersection of MC with AVC and ATC indicates the minimum points of AVC and ATC, which is significant for understanding cost behavior in production processes.
- The trends of these curves help in analyzing efficiency and the impact of different levels of production on costing.

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