The following figure shows equilibrium at the industry and firm level. Figure 23.6
In the figure,
S1, S2, S3 are the market supply curves.
D1 and D2 are the market demand curves.
MC is the marginal cost curve of the firm.
MR1 and MR2 are the marginal revenue curves of the firm.
ATC is the average-total-cost curve of the firm.
According to Figure 23.6, at a price of $1, the firm would earn an economic profit of:
A) $15.
B) $9.
C) $13.50.
D) $12.50.
E) 0.
Correct Answer:
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