Question

Use the graph below to answer the next two questions MC ATC $Price $12 Z MR SIO $9.75 opinion planosno is asheviote/i / l Avc AZ MR s ni b u dardi songsdl. alle / svo / hos olla lubivibilons Sans que lo 20onnalisa moss andia-aong nominovano sodninaluubi ne b allo 50 60 ob torriollos lo biti Quantity Quantity on T annol S 19. This profit-maximizing firm will produce units of output and have total revenue of a. 50; $487.50 b. 50; $600 c. 60; $600 a. 60; $720 gaul di bisodes odeias LP 20. This profit-maximizing firm is: die belanues no s on sdt a. in long-run equilibrium. le soin b. earning a normal profit (zero economic profit) in the short run. c. earning an economic profit of $112.50 in the short run.g oong d. earning an economic profit of $120 in the short run. How do you know ifs in long run or SR 2.

I need help with 19 and 20. I tried my best on 19 but I don't know if the answer I circled is correct. Thank you.

Answer 1

Answer.)

Q19.) D.) 60; $720

For profit maximizing quantity , MR should be equal to MC. This indicates that profit-maximizing output is 60 units. Total revenue = Price x Quantity = $720

Q20.) D.) earning an economic profit of $120 in the hort run

Since firm is earning an economic profit this indicates that firm is in short run. In long run , Price = ATC.