B) The figure below shows the total cost and revenue curves for a firm on the same diagram TC 60 50 40 TR 30 10 20 30 40 50 60 70 80 Quantity At what output is the firm's profit maximised and why? Please explain the shapes of the TC and TR curves? How much is total fixed cost? Why are two break-even points in the above diagram? Costs and revenue (C). 20 10 i) ii) iii) iv) 90

B) The figure below shows the total cost and revenue curves for a firm on the same diagram TC 60 50 40 TR 30 10 20 30 40 50 60 70 80 Quantity At what output is the firm's profit maximised and why? Please explain the shapes of the TC and TR curves? How much is total fixed cost? Why are two break-even points in the above diagram? Costs and revenue (C). 20 10 i) ii) iii) iv) 90

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 4CQQ

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