Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 12.4, Problem 2QQ
To determine
Accounting profit.
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Perfect Competition
MC - Marginal Cost
MR - Marginal Revenue
ATC - Average Total Cost
Refer to the figure above. If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price, the firm's total revenue will be:
$240
$90
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Perfect Competition
MC - Marginal Cost
MR - Marginal Revenue
ATC - Average Total Cost
AVC - Average Variable Cost
Refer to the figure above. If this firm decides to operate and is producing the profit-maximizing quantity, then the firm's profit will be:
$40
$0
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Perfect Competition
MC - Marginal Cost
MR - Marginal Revenue
ATC - Average Total Cost
Refer to the figure above. If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price, the firm's profit will be:
$240
$160
$80
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