Question: The graph in Figure 8.1 represents the relationship between total cost, total revenue (on the vertical axis), and quantity of the goods or service (on

  1. The graph in Figure 8.1 represents the relationship between total cost, total revenue (on the vertical axis), and quantity of the goods or service (on the horizontal axis). What is the economic profit of the firm represented in Figure 8.1 (assume the firm is maximizing its economic profit)? Please explain your answer.

Figure 8.1

The graph in Figure 8.1 represents the relationship between total cost, total

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