Figure 8.4 Figure 8.4 shows the cost and demand curves for a profit-maximising firm in a perfectly competitive market.
-Refer to Figure 8.4.If the market price is $30 and the firm is producing output, the amount of the firm's profit or loss is

Question

Figure 8.4  Figure 8.4 shows the cost and demand curves for a profit-maximising firm in a perfectly competitive market.
-Refer to Figure 8.4.If the market price is $30 and the firm is producing output, the amount of the firm's profit or loss is

Quizplus · Accepted Answer

At a market price of $30, the firm's total revenue (TR) is the price ($30) times the quantity produced and sold. Without the specific figure (Figure 8.4) or details on quantity, we can't calculate the exact revenue or costs. However, based on the given answer choices, if the correct answer is a loss of $1080, it implies that the firm's total costs exceed its total revenue by $1080. This situation occurs when the price is not high enough to cover average total costs at the chosen level of output, leading to a loss.

Figure 84 Figure 8