Using the attached graph to answer the following questions: Notes: MC is marginal cost, MR is marginal revenue, ATC is the average total cost, AVC is the average variable cost, and D is the demand curve. Based on your answer, what is the total revenue? Total costs? Total profit? Total fixed cost? Will you operate this firm in the short run? Long run? Briefly explain.

Using the attached graph to answer the following questions: Notes: MC is marginal cost, MR is marginal revenue, ATC is the average total cost, AVC is the average variable cost, and D is the demand curve. Based on your answer, what is the total revenue? Total costs? Total profit? Total fixed cost? Will you operate this firm in the short run? Long run? Briefly explain.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter22: Perfect Competition

Section: Chapter Questions

Problem 5QP

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Notes for graph: MC is marginal cost, MR is marginal revenue, ATC is average total cost, AVC is average variable cost and D is the demand curve. To maximize the profit, how many units should the firm produce? At what price? Based on your answer, what is the total revenue? Total costs? Total profit? Total fixed cost? Will you operate this firm in the short run? Long run? Briefly explain.
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