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 maximizes profits, its ________ equals $320.

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 maximizes profits, its ________ equals $320.

Quizplus · Accepted Answer

When a firm maximizes profits, its total revenue minus total cost equals profit. The question specifies a particular value ($320) but does not directly state what this value represents. However, in the context of profit maximization, it's implied that the firm's operations result in a specific financial outcome. Since the question is about what equals $320 when the firm maximizes profits, and without specific details from Figure 15.1, the most logical interpretation is that $320 refers to an outcome of profit-maximizing behavior, typically related to revenue, cost, or profit itself. Given the options, total revenue is a plausible answer because it's a key figure in calculating profit (profit = total revenue - total cost). However, without the figure or more context, this explanation assumes that $320 is the result of profit-maximizing activities, likely linked to the firm's revenue, as profits and costs are not directly specified in the options.

Refer to the Information Provided in Figure 15