25 20 16 15 12 10 5 720 • 600 960 I I 10 80 90 100 110 Q 20 30 45 50 60 70 Consider the above diagram as the cost and revenue structure of perfect competition (P = MR) If the price is $15 (P2), what is the total revenue associated with the profit maximizing (or loss minimizing) quantity? 900 AVC P₂ P3

25 20 16 15 12 10 5 720 • 600 960 I I 10 80 90 100 110 Q 20 30 45 50 60 70 Consider the above diagram as the cost and revenue structure of perfect competition (P = MR) If the price is $15 (P2), what is the total revenue associated with the profit maximizing (or loss minimizing) quantity? 900 AVC P₂ P3

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter11: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 14CQ

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