Graph 14-5
This graph depicts the cost structure of a firm in a competitive market. Use the graph to answer the following question(s) .
-Refer to Graph 14-5. When market price is P₄, a profit-maximising firm's total cost can be represented by the area:

Question

Graph 14-5

This graph depicts the cost structure of a firm in a competitive market. Use the graph to answer the following question(s) .
-Refer to Graph 14-5. When market price is P₄, a profit-maximising firm's total cost can be represented by the area:

Quizplus · Accepted Answer

The total cost is represented by the area under the average total cost curve up to the quantity produced, which is P₂ * Q₄ in this context.

Graph 14-5 This Graph Depicts the Cost Structure of a of a Firm