What is the firm's profit if the price is P1? What is the firm's profit if the price is P2?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Use the following graph to answer the questions below. Please enter your answers as whole numbers with no decimal places (ie.
500 or $500 not 500.00 or "Five hundred dollars").
40
MC
АТC
35
30
P,
AVC
25
20
16
P2
12
10
P3
5
10 20 30
45 50 60 70
80 90 100 110
Q
What is the firm's profit if the price is P1?
What is the firm's profit if the price is P2?
How many units will the firm produce if the price falls to P3? Note: For this question I am asking for the quantity the firm will
produce to maximize profit not the amount of profit the firm will earn.
CO 5
LO
Transcribed Image Text:Use the following graph to answer the questions below. Please enter your answers as whole numbers with no decimal places (ie. 500 or $500 not 500.00 or "Five hundred dollars"). 40 MC АТC 35 30 P, AVC 25 20 16 P2 12 10 P3 5 10 20 30 45 50 60 70 80 90 100 110 Q What is the firm's profit if the price is P1? What is the firm's profit if the price is P2? How many units will the firm produce if the price falls to P3? Note: For this question I am asking for the quantity the firm will produce to maximize profit not the amount of profit the firm will earn. CO 5 LO
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