Figure 14-6

-Refer to Figure 14-6.When a profit-maximizing firm is earning profits,what can identify those profits

Question

Figure 14-6
 
-Refer to Figure 14-6.When a profit-maximizing firm is earning profits,what can identify those profits

Quizplus · Accepted Answer

When a profit-maximizing firm is earning profits, the amount of profit can be identified as (P - ATC) × Q, where P is the price, ATC is the average total cost, and Q is the quantity sold. This formula takes into account both the revenue from sales (P × Q) and the costs incurred in producing the goods (ATC × Q). The difference between the two is the amount of profit earned by the firm. Therefore, choice C is the best choice.

Figure 14-6 -Refer to Figure 14-6.When a Profit-Maximizing Firm Is Earning Profits,what