Consider a perfectly competitive firm with marginal cost (MC) and average total cost (ATC) given in the figure. Price 12- MC ..... ATC Suppose the market price is 6. In this case, the firm's revenue will be and its 10- marginal revenue will be |. If instead the market price were the firm would earn: 8- O A. positive economic profit 6- O B. negative economic profit C. zero economic profit 4- 2-

Consider a perfectly competitive firm with marginal cost (MC) and average total cost (ATC) given in the figure. Price 12- MC ..... ATC Suppose the market price is 6. In this case, the firm's revenue will be and its 10- marginal revenue will be |. If instead the market price were the firm would earn: 8- O A. positive economic profit 6- O B. negative economic profit C. zero economic profit 4- 2-

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 5CQQ

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Figure 14-2 Suppose a firm operating in a competitive market has the following cost curves: 20 MC 18 16 14 12 ATC 10 8 7 4 1 3 4 5 6 7 8 9 10 QUANTITY Refer to Figure 14-2. If the market price is $10, what is the firm's total revenue? a. $35 b. $30 C. $15 d. $50 PRICE