Question
Asked Jan 29, 2019
152 views

What will be the firms total profit?

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
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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

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Step 1

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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