© Macmillan Learning Your business, which has some market power, has the following demand (D), marginal revenue (MR), marginal cost (MC), and average cost (AC) curves. Move point E to label the profit-maximizing price and quantity for your firm. How much is the firm making in profit? $ If the goal of your business is to maximize profit, what will your long term strategy be? The business will exit the market because it is unable to cover its average costs. Price($) 1 2 3 4 10 9 8 7 E 6 5 MR MC D ATC 0 0 10 20 30 40 50 60 70 80 90 100 Quantity
© Macmillan Learning Your business, which has some market power, has the following demand (D), marginal revenue (MR), marginal cost (MC), and average cost (AC) curves. Move point E to label the profit-maximizing price and quantity for your firm. How much is the firm making in profit? $ If the goal of your business is to maximize profit, what will your long term strategy be? The business will exit the market because it is unable to cover its average costs. Price($) 1 2 3 4 10 9 8 7 E 6 5 MR MC D ATC 0 0 10 20 30 40 50 60 70 80 90 100 Quantity
Chapter23: Profit Maximization
Section: Chapter Questions
Problem 11E
Related questions
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please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
![© Macmillan Learning
Your business, which has some market power, has the
following demand (D), marginal revenue (MR), marginal cost
(MC), and average cost (AC) curves.
Move point E to label the profit-maximizing price and
quantity for your firm.
How much is the firm making in profit? $
If the goal of your business is to maximize profit, what
will your long term strategy be?
The business will exit the market because it is unable
to cover its average costs.
Price($)
1
2
3
4
10
9
8
7
E
6
5
MR
MC
D
ATC
0
0
10
20
30
40 50
60
70
80
90 100
Quantity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F624e127f-08cf-422f-85e5-1e8643292be5%2Fd22fe448-6f0e-42d9-b152-16fe73e83912%2Ffdvgkf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:© Macmillan Learning
Your business, which has some market power, has the
following demand (D), marginal revenue (MR), marginal cost
(MC), and average cost (AC) curves.
Move point E to label the profit-maximizing price and
quantity for your firm.
How much is the firm making in profit? $
If the goal of your business is to maximize profit, what
will your long term strategy be?
The business will exit the market because it is unable
to cover its average costs.
Price($)
1
2
3
4
10
9
8
7
E
6
5
MR
MC
D
ATC
0
0
10
20
30
40 50
60
70
80
90 100
Quantity
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