The Figure Given Below Shows the Cost Curves of a Firm

question 75

Multiple Choice

The figure given below shows the cost curves of a firm. Figure 8.3
ATC: Average Total Cost
AVC: Average Variable Cost
MC: Marginal Cost
-In Figure 8.3,if the marginal revenue of the firm is constant at $55,calculate the profit earned by the firm?

• A)$35
• B)$40
• C)$600
• D)$4,800
• E)$0

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Definitions:

Efficacy

The ability to produce a desired or intended result, often used in the context of medicine to describe the effectiveness of a treatment.

Longitudinal Study

An observational research method in which data is gathered for the same subjects repeatedly over a period of time.

Developmental Trends

Patterns and sequences of development observed over time, which can include physical, cognitive, and social changes.

Causality

The relationship between cause and effect, where one event (the cause) is understood to lead to another event (the effect) as a result.