Q8 Consider the following diagram to calculate profit or loss of a firm in perfect competition. $11 $9 $6 $5 Quantity = Average cost (ATC} = Total cost (TC) Profit per unit 75 D 100 MC AVC ATC MR Quantity Price Total revenue (TR) = Total profit= Shut down price-

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Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.