Question: The following graph shows average total cost, average variable cost, and marginal cost curves for Oiram-46, a competitive firm producing magic hats. The prevailing market

The following graph shows average total cost, average variable cost, and marginal cost curves for Oiram-46, a competitive firm producing magic hats. The prevailing market price is at $1.50 and Oiram-46 maximizes its profit producing 16 magic hats . Oiram-46 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 12 11 10 9 8 7 6 5 4 3 2 1 0 TOTAL COST (Dollars) QUANTITY (Magic hats per week) ATC AVC Market Price MC 24, 2.5 Based on the graph, Oiram-46's revenue is equal to $24 and its total fixed cost is equal to $ . Thus, Oiram-46 . This is because Oiram-46's profit does not cover even its average variable cost. Oiram-46's loss is smaller than its fixed cost. Oiram-46's profit is greater than its total cost. the marginal revenue is below the minimum of average variable cost

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