Figure 7.4
-Suppose that Figure 7.4 shows an industryʹs market demand, its marginal revenue, and the production costs of a representative firm. If the industry was perfectly competitive, a representative firmʹs profit would be:
A)$1,250.
B)$450.
C)$250.
D)There is not sufficient information.

Question

Figure 7.4
-Suppose that Figure 7.4 shows an industryʹs market demand, its marginal revenue, and the production costs of a representative firm. If the industry was perfectly competitive, a representative firmʹs profit would be:
A)$1,250. 
B)$450. 
C)$250. 
D)There is not sufficient information.

Quizplus · Accepted Answer

Without the actual Figure 7.4 and specific numerical data on costs, prices, and quantities, it is impossible to calculate the firm's profit.

Figure 7.4 -Suppose That Figure 7.4 Shows an Industryʹs Market Demand, Its