Exercise on Identifying a firm's profit: Solutions

Question: As illustrated in the figure, determine this firm's total profit.
Then calculate the firm's profit.

identifying-firm-profit.jpg

Solution:
Profit per unit = P − ATC = $20 − $11 = $19
Total profit = (P − ATC) × Q = $19 × 70 = $1,330




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Date of last modification: 2019