Exhibit 7-10 Price and cost data for a firm $$\begin{array} { | c | c | c | c | c | }
\hline \text { Q } & \text { P } & \text { AVC } & \text { ATC } & \text { MC } \
\hline 0 & \$ 12 & - & - & - \
1 & 12 & 3 & 5 & 5 \
2 & 12 & 5 & 6 & 7 \
3 & 12 & 7.3 & 8 & 12 \
4 & 12 & 9.5 & 10 & 16 \
\hline
\end{array}$$ In Exhibit 7-10, the maximum possible total profit is:

Question

Exhibit 7-10 Price and cost data for a firm $$\begin{array} { | c | c | c | c | c | } 
\hline \text { Q } & \text { P } & \text { AVC } & \text { ATC } & \text { MC } \
\hline 0 & \$ 12 & - & - & - \
1 & 12 & 3 & 5 & 5 \
2 & 12 & 5 & 6 & 7 \
3 & 12 & 7.3 & 8 & 12 \
4 & 12 & 9.5 & 10 & 16 \
\hline
\end{array}$$ In Exhibit 7-10, the maximum possible total profit is:

Quizplus · Accepted Answer

The maximum profit occurs where marginal cost (MC) is less than or equal to price (P). At Q=2, P=12 and MC=7, total revenue is $24 (2*$12) and total cost is $12 (2*$6), resulting in a profit of $12.

Exhibit 7-10 Price and Cost Data for a Firm In Exhibit 7-10, the Maximum Possible Total Profit Is: A)

Exhibit 7-10 Price and Cost Data for a Firm In Exhibit 7-10, the Maximum Possible Total Profit Is:
A)