The following figure depicts the marginal cost curve, the average total curve, and the average variable cost curve of a certain firm.

-Refer to the figure above.What is the price on the market when the firm makes a profit of $4,50?

Question

The following figure depicts the marginal cost curve, the average total curve, and the average variable cost curve of a certain firm.
 
-Refer to the figure above.What is the price on the market when the firm makes a profit of $4,50?

Quizplus · Accepted Answer

To find the price on the market when the firm makes a profit of $4.50, we need to look for the quantity where the marginal cost (MC) intersects the average total cost (ATC) at a point that is $4.50 above the average variable cost (AVC). From the graph, we can see that this occurs at a quantity of 6, where the price is $6. Therefore, the answer is C.

The Following Figure Depicts the Marginal Cost Curve, the Average