Use the figure to answer the following question(s).
Figure 9-6
-When the market price in Figure 9-6 is $20, the firm's maximum profit will be approximately

Question

Use the figure to answer the following question(s).
Figure 9-6 
-When the market price in Figure 9-6 is $20, the firm's maximum profit will be approximately

Quizplus · Accepted Answer

The firm's maximum profit is calculated by finding the difference between total revenue and total cost. If the market price is $20, the firm will produce where marginal cost equals marginal revenue, and the profit is the area between the price and the average total cost curve at that quantity. The given options suggest that $60 is the closest approximation for maximum profit.

Use the Figure to Answer the Following Question(s)