The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.2
MC: Marginal cost curve
MR: Marginal revenue curve
ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-Refer to Figure 10.2. If the marginal-revenue curve would have intersected the average-total-cost curve at the latter's lowest point and the firm maximized profit, then total profit would have been equal to:

Question

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.2
  MC: Marginal cost curve
MR: Marginal revenue curve
ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-Refer to Figure 10.2. If the marginal-revenue curve would have intersected the average-total-cost curve at the latter's lowest point and the firm maximized profit, then total profit would have been equal to:

Quizplus · Accepted Answer

When the marginal-revenue curve intersects the average-total-cost curve at its lowest point, the firm is producing at the point where price equals the minimum average total cost, resulting in zero economic profit.

The Figure Given Below Shows the Revenue and Cost Curves