Question: Consider the graph below. Suppose qO = 400, pO = $25, and ATC = $18 at 400 units. Is the profit-maximizing firm in an oligopoly

Consider the graph below. Suppose qO = 400, pO = $25, and ATC = $18 at 400 units.

Is the profit-maximizing firm in an oligopoly market making a profit or loss, and by how much?

$2,800 profit

$10,000 profit

$2,800 loss

$7,200 loss

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