(a) When Quantity = 400, Price (From demand curve) = $27 and ATC = $21
Profit = Q x (P - ATC) = 400 x $(27 - 21) = 400 x $6 = $2400
(b) Maximum profit means MR intersects MC here Q = 500 and Price = $24
(c) In following graph the black rectangle represents profit.
The graph below shows the demand (D), marginal revenue (MR), marginal cost (MC), and average total...
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