What is the profit margin for this firm at a quantity of eight? Price or cost$12$11田Marginalcost$10$9$8$7$6$5"Averagetotal costAverage$4$3$2$1variablecost-Demand$0$-1$-2$-3$-423 4 5 67 8 9 10 11 12 1314 15 16 17 18 19 20 21.Quantity$-5$-6Marginalrevenue

Profit occurs when price is higher than average total costs. We can such a profit as super normal…

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What is the profit margin for this firm at a quantity of eight?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

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Question

What is the profit margin for this firm at a quantity of eight?

Price or cost
$12
$11
田
Marginal
cost
$10
$9
$8
$7
$6
$5
"Average
total cost
Average
$4
$3
$2
$1
variable
cost
-
Demand
$0
$-1
$-2
$-3
$-4
23 4 5 67 8 9 10 11 12 1314 15 16 17 18 19 20 21.
Quantity
$-5
$-6
Marginal
revenue

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