Figure 12-5 Figure 12-5 Shows Cost and Demand Curves Facing a Typical

question 225

Multiple Choice

Figure 12-5

Figure 12-5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry.
-Refer to Figure 12-5.If the market price is $20, what is the average profit at the profit-maximizing quantity?

• A)$5
• B)$6
• C)$9
• D)$20

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