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Social SciencePriceATCMCAVC8410 11 12 13QuantityThe graph shows the cost curves of a firm in a competitive industry. The market price is $5.K09/21VIEW SOLUTIONSUBMIT ANSWER17 OF 21QUESTIONS COMPLETED28MacBook Pro名□ F3esc:OF7F8F9F28%76
What will be the firms total profit?
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Price ATC MC AVC 8 4 10 11 12 13 Quantity The graph shows the cost curves of a firm in a competitive industry. The market price is $5. K09/21 VIEW SOLUTION SUBMIT ANSWER 17 OF 21QUESTIONS COMPLETED 28 MacBook Pro 名□ F3 esc :O F7 F8 F9 F2 8% 7 6
Expert Answer
In Perfect competition, the firm is in equilbrium where the MC curve cuts MR curve below. Here, MR and AR is equal to $ 5.00 hence the MR and AR curve is perpendicular to Y-axis from $ 5.00
MC curve cust MR from below at qty of 12 units, which is a equilbrium qty.
Hence, The total revenue = Equiliriu...
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