Answered: The maximum total short-run economic…

The maximum total short-run economic profit of the firm with the cost and revenue curves that is shown in the figure above is $80,000. $160,000. $240,000.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Figure: Profit Maximization for a Firm in Monopolistic Competition
Price per pair ($)
10
9
8
7
6
S
3
2
1
0
0
Reference: Ref 15-2
$80,000.
$160,000.
10
$240,000.
$120,000.
Marginal cost
The maximum total short-run economic profit of the firm with the cost and revenue curves that
is shown in the figure above is
Average cost
20 30 40 50
Pairs of gloves (in thousands)
Demand
Marginal revenue
60 70 80 90 100

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