Below are the short-run data of a representative firm in a perfectly competitive industry. The market price is $2.0, and you know that the firm is maximizing profits. What is the profit of the firm (rounded to one digit after the decimal point)? MC AVC ATC 1.0 1.0 1.50 2 1.2 1.1 1.35 3 1.4 1.2 1.37 4. 1.6 1.3 1.43 1.8 1.4 1.50 2.0 1.5 1.58 7 2.2 1.6 1.67 8 2.4 1.7 1.76 2.6 1.8 1.86 10 2.8 1.9 1.95 Example on how to interpret the numbers: The MC of the second unit (Q=2) is 1.2 O $0.4 O $2.0 O $5.0 O $0.5 O $2.5 O o o

Below are the short-run data of a representative firm in a perfectly competitive industry. The market price is $2.0, and you know that the firm is maximizing profits. What is the profit of the firm (rounded to one digit after the decimal point)? MC AVC ATC 1.0 1.0 1.50 2 1.2 1.1 1.35 3 1.4 1.2 1.37 4. 1.6 1.3 1.43 1.8 1.4 1.50 2.0 1.5 1.58 7 2.2 1.6 1.67 8 2.4 1.7 1.76 2.6 1.8 1.86 10 2.8 1.9 1.95 Example on how to interpret the numbers: The MC of the second unit (Q=2) is 1.2 O $0.4 O $2.0 O $5.0 O $0.5 O $2.5 O o o

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter9: Market Structure And Long-run Equilibrium

Section: Chapter Questions

Problem 5MC

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