The accompanying graph depicts average total cost (ATC) marginal cost (MC), marginal revenue (M), and demand (D) 50 facing a monopolistically competitive firm MC 45 Place point A at the firm's profit maximizing price and quantity 40 35 What is the firm's total cost? ATC 30 25 total cost: 20 15 What is the firm's total revenue? 10 5 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 ($)
The accompanying graph depicts average total cost (ATC) marginal cost (MC), marginal revenue (M), and demand (D) 50 facing a monopolistically competitive firm MC 45 Place point A at the firm's profit maximizing price and quantity 40 35 What is the firm's total cost? ATC 30 25 total cost: 20 15 What is the firm's total revenue? 10 5 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 ($)
Chapter10: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 4SQP
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Transcribed Image Text:The accompanying graph depicts average total cost (ATC)
marginal cost (MC), marginal revenue (M), and demand (D)
50
facing a monopolistically competitive firm
MC
45
Place point A at the firm's profit maximizing price and
quantity
40
35
What is the firm's total cost?
ATC
30
25
total cost:
20
15
What is the firm's total revenue?
10
5
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 ($)
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