MC ATC AVC 10 7 5 2 0 At which of the following prices will the...

Question

Question

MC ATC AVC 10 7 5 2 0 At which of the following prices will the firm shown in the accompanying graph make an economic profit?

Answer 1

Answer #1

Answer
The firm produces at MC=P
and it makes an economic profit if the P>ATC
so the MC>ATC
the MC=P above ATC is at $10 of price.

Option 5

Answer 2

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