The accompanying graph depicts average total cost (ATC),marginal cost (MC), marginal revenue (M), and demand (D)facing a monopolistically competitive firm.50MCPlace point A at the firm's profit maximizing price and45quantity.40What is the firm's total cost?3530ATC25total cost: $20D1510What is the firm's total revenue?MR05 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100Quantitytotal revenue: $What is the firm's total profit?profit: $Price and Cost ($)

The profit is maximum at MR=MC where Q=50 and P=30 ATC=25

The accompanying graph depicts average total cost (ATC), marginal cost (MC), marginal revenue (M), and demand (D) facing a monopolistically competitive firm. 50 MC Place point A at the firm's profit maximizing price and quantity. 45 40 What is the firm's total cost? 35 30 ATC 25 total cost: $ 20 D 15 10 What is the firm's total revenue? MR 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity total revenue: $ What is the firm's total profit? profit: $ Price and Cost ($)

The accompanying graph depicts average total cost (ATC), marginal cost (MC), marginal revenue (M), and demand (D) facing a monopolistically competitive firm. 50 MC Place point A at the firm's profit maximizing price and quantity. 45 40 What is the firm's total cost? 35 30 ATC 25 total cost: $ 20 D 15 10 What is the firm's total revenue? MR 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity total revenue: $ What is the firm's total profit? profit: $ Price and Cost ($)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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