sapling learning The graph illustrates an average total oost (ATc)aurve (also so

Question

sapling learning The graph illustrates an average total oost (ATc)aurve (also sometimes called average marginal cost (MC)airve, average variable cost and co price) for a revenue (MR) curve frm is profit maximizing and does y competitive firm that produces terrible towels. Assume that the not shutdown in the short run. What is the firm's total revenue? Price, cost ATC What is the firm's total cost? What is the firm's profit (enter a negative number for a loss)? Previous Give up s vie. Soliakon Check Answer

Explanation / Answer

Firms produce at MR=MC. This happs at quantity 260.

Total revenue= price x quantity

Total revenue= 500 x 260=130000

Total cost = ATC x quantity

At quantity 260, ATC = 825.

Total cost= 825 x 260= 214500

Profits= TOtal revennue- Total cost

Profits= 130000-214500

profits= - 84500

There is loss of 84500 or there is negative profit.

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