ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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6
The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a firm are shown in the figure below. The
market price is $10.
Instructions: Use the tool provided (Pt. A) to identify the profit-maximizing output. Then use the tool "Profit" to draw the area of profit
(or loss) that occurs at this level of output. Position this rectangle by dragging on the vertices.
Price/Cost ($)
50
40
30
20
10
0
10
20
30
Quantity
MC
40
ATC
AVC
50
Tools
-i
Pt. A
Profit
0
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Transcribed Image Text:The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a firm are shown in the figure below. The market price is $10. Instructions: Use the tool provided (Pt. A) to identify the profit-maximizing output. Then use the tool "Profit" to draw the area of profit (or loss) that occurs at this level of output. Position this rectangle by dragging on the vertices. Price/Cost ($) 50 40 30 20 10 0 10 20 30 Quantity MC 40 ATC AVC 50 Tools -i Pt. A Profit 0
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