(a) Find the total profit or total loss of the firm shown in the graph. (b) Is the firm in short run or long run? (c) How much is the firm's most efficient output? (d) What is the lowest price the firm would accept in the long run?
(a) Total profit = (price - ATC) × output
= ($12.50 - $13.15) × 125
= -$.65 × 125
= -$81.25 (loss of approximately $81.25)
(b) short run; (c) 143; (d) $13.05
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