Figure 7.5 Figure 7.5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry.
-Refer to Figure 7.5.The firm's manager suggests that the firm's goal should be to maximise average profit.If the firm does this,the amount of profit that it will earn is -.

Question

Figure 7.5  Figure 7.5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry.
-Refer to Figure 7.5.The firm's manager suggests that the firm's goal should be to maximise average profit.If the firm does this,the amount of profit that it will earn is -.

Quizplus · Accepted Answer

Average profit is maximised at the point where marginal revenue equals marginal cost. At this point, output is 15 units and profit is $6600.

Figure 75 Figure 7