Top Posters
Since Sunday
28
o
8
d
6
C
5
A
5
H
5
n
4
t
4
d
4
p
4
r
4
s
4
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
hliz3 hliz3
wrote...
Go to Answer
Posts: 83
Rep: 0 0
5 months ago

The diagram below shows the market demand curve and the cost curves for a single firm.

Short description: A graph plots output against price. Long description: The horizontal axis representing output lists the following values from left to right: Q subscript 1 and Q subscript 2. The vertical axis representing dollars lists the following values from bottom to top: P subscript 1, P subscript 2, and P subscript 3. The graph plots three curves and five points. The points are as follows: a (Q subscript 1, P subscript 3), b (Q subscript 2, P subscript 2), c (Q subscript 2, P subscript 1), d (Q subscript 1, P subscript 2), and e (Q subscript 1, P subscript 1). The curve, LRAC passes through the following points: a and b. The curve, MC passes through the point, c. The curve, D passes through the following points: a and c. Curve, D intersects the curves, LRAC and MC at points, a and c.

FIGURE 12-7

Refer to Figure 12-7. Suppose this firm is being regulated using a policy of average-cost pricing. In this case, economic profits to the firm are represented by the area



▸ P2P3ad.

▸ 0P3aQ1.

▸ P2P3ab.

▸ P1P2bc.

▸ There are no economic profits.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
Read 12 times
1 Reply
Replies
Answer verified by a subject expert
shanej399shanej399
wrote...
#1
Posts: 63
Rep: 1 0
5 months ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
There are no economic profits.
1

Related Topics

hliz3 Author
wrote...

5 months ago
Thanks
dearsophia21
wrote...

Yesterday
Good timing, thanks!
patyfeitosa
wrote...

2 hours ago
Thank you, thank you, thank you!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  204 People Browsing
 309 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Related Images
  
 1005
  
 5197
  
 545
Your Opinion
Who's your favorite biologist?
Votes: 426
Previous poll results: What's your favorite funny biology word?