The accompanying graph depicts average total cost (ATC), marginal cost (MC), marginal revenue (M), and demand (D) facing a monopolistically competitive firm. 50 MC 45 Place point A at the firm's profit maximizing price and 40 quantity. 35 What is the firm's total cost? ATC 30 25 total cost: $ 20 15 What is the firm's total revenue? 10 total revenue: $ MR 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity What is the firm's total profit? profit: $ Price and Cost (S)
The accompanying graph depicts average total cost (ATC), marginal cost (MC), marginal revenue (M), and demand (D) facing a monopolistically competitive firm. 50 MC 45 Place point A at the firm's profit maximizing price and 40 quantity. 35 What is the firm's total cost? ATC 30 25 total cost: $ 20 15 What is the firm's total revenue? 10 total revenue: $ MR 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity What is the firm's total profit? profit: $ Price and Cost (S)
Chapter14: Monopolistic Competition And Product Differentiation
Section: Chapter Questions
Problem 13P
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Question
Transcribed Image Text:The accompanying graph depicts average total cost (ATC),
marginal cost (MC), marginal revenue (M), and demand
(D) facing a monopolistically competitive firm.
50
MC
45
Place point A at the firm's profit maximizing price and
40
quantity.
35
What is the firm's total cost?
ATC
30
25
total cost: $
20
15
What is the firm's total revenue?
10
total revenue: $
MR
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100
Quantity
What is the firm's total profit?
profit: $
Price and Cost (S)
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