The figure given below shows the demand and cost curves of a perfectly competitive firm. Figure: 9.4
D: Demand curve
MC: Marginal cost curve
ATC: Average-total cost curve
AVC: Average-variable-cost curve
-Refer to Figure 9.4.The total profit or loss for the firm is:
A) $500 profit.
B) $2,500 profit.
C) $2,500 loss.
D) $650 loss.
E) $500 loss.
Correct Answer:
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