MC ATC method
Not what you're looking for?
I would really apriciate it if you could explain the answer in a detailed way with graphs.Thank you.
Firms in pure competition take the market price as given and produce the level of output which will maximize their profits.This quantity can be determined graphically by using either the total revenue, total cost approach or the marginal revenue, marginal cost approach. By using either one of these two methods, can you show graphically how the profit maximizing output is found. Please use the graphs ( I need two different graphs for this question) to show how much economic profit or economic loss the firm is making.
Purchase this Solution
Solution Summary
MC ATC method is applied.
Solution Preview
I used the MC ATC method. see attachment. hope this helps. remember finding ...
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.