The following figure shows the marginal cost curve, average total cost curve, average variable cost curve, and
Question:
The following figure shows the marginal cost curve, average total cost curve, average variable cost curve, and marginal revenue curve for a firm for different levels of output in a perfectly competitive market.
1. Assuming that price at 0R is $10, the profit maximizing level of output for the firm is _____.
2. Is the firm making zero economic profit?
3. At the profit-maximizing level of output, the profit of the firm is equal to the area given b y _____.
4. At the output level of OC, average profit per unit of output is equal to _____.
5. At the profit-maximizing level of output, the total revenue of the firm is equal to the area given by _____.
6. Maximum profit per unit is equal to _____.
7. At the output level OB, total profits equal the area given by _____.
8. At the output level OC, average fixed cost is equal to _____.
9. At the output level OB, total profits equal the area given by _____.
10. If the market price is $10, average revenue _____.
Expert Answer:
