Price Po 0 ATC AVC Refer to the diagram above. At the point marked m, m e Qo MC DD Quantity

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a) the leftover rectangle is the profit earned.

b) price is above average cost of production.

c) TR is exactly equal to TC, so profits equal zero.

d) price is determining production at a level where P = MC. 

Price
P
0
0
ATC
AVC
Refer to the diagram above. At the point marked m,
3
Qo
MC
DD
Quantity
Transcribed Image Text:Price P 0 0 ATC AVC Refer to the diagram above. At the point marked m, 3 Qo MC DD Quantity
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