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 1.0 1.0 1.50 1.2 1.1 1.35 3 1.4 1.2 1.37 4 1.6 1.3 1.43 5. 1.8 14 1.50 6. 2.0 1.5 1,58 7 2.2 16 1.67 8. 2.4 1.7 1.76 9 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 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 1.0 1.0 1.50 1.2 1.1 1.35 3 1.4 1.2 1.37 4 1.6 1.3 1.43 5. 1.8 14 1.50 6. 2.0 1.5 1,58 7 2.2 16 1.67 8. 2.4 1.7 1.76 9 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 o o

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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