Answer: Firm's profit is $2,250
The market price of the product is $100. At this price, the firm is producing the profit-maximizing level of output of 30 units. From the figure, we see that, at this level of output, the firm's average total cost(ATC) is $25.
Now,
Profit = Total revenue - Total cost
Or, Profit = Price * Quantity - ATC * Quantity
The firm's profit = ($100 * 30) - ($25 * 30)
Or, The firm's profit = $3,000 - $750
Or, The firm's profit = $2,250
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