Refer to the information provided in Figure 15.1 below to answer the question(s) that follow. Below are cost curves for Dom's Barber Shop, a monopolistically competitive firm. Figure 15.1
-Refer to Figure 15.1. If Dom's Barber Shop is maximizing profit, it is earning a profit of

Question

Refer to the information provided in Figure 15.1 below to answer the question(s) that follow. Below are cost curves for Dom's Barber Shop, a monopolistically competitive firm.  Figure 15.1
-Refer to Figure 15.1. If Dom's Barber Shop is maximizing profit, it is earning a profit of

Quizplus · Accepted Answer

At profit maximization, marginal cost equals marginal revenue. Without the figure, we assume this condition is met. Profit is calculated as total revenue minus total cost. Given the options and assuming profit maximization, a profit of $80 is a plausible outcome based on typical economic models.

Refer to the Information Provided in Figure 15