-Bill owns a lawn-care company in Windermere,Florida,Florida,whose cost curves are illustrated in the above figure.The market equilibrium price in this perfectly competitive market equals $32 per lawn mowed.If Bill's average total cost curve is ATC,his total economic ________ equals ________.

Question

Quizplus · Accepted Answer

Bill's total economic profit is calculated by subtracting total costs from total revenue. In a perfectly competitive market, firms maximize profit where marginal cost equals market price. If the equilibrium price is $32 and this price covers Bill's average total cost (ATC) at the profit-maximizing output level, then any amount above ATC represents profit per unit. Without specific numbers for quantity, ATC, or marginal cost from the "above figure" (which is not provided), we can't calculate exact values or confirm the profit amount. However, given the options, if Bill's operation results in a profit, the correct choice among the provided options that indicates a profit scenario is "profit; $480 per week." This choice assumes specific details about Bill's costs and revenues that align with this outcome.

-Bill Owns a Lawn-Care Company in Windermere,Florida,Florida,whose Cost Curves Are