a) Using the data from graph, calculate the firm's total profit. (b) If the firm operates at optimum efficiency, how much will its output be? (c) If the firm were a perfect competitor, how much will its price be in the long run?
(a) Total Profit = (Price - ATC) × Output
= ($111.25 - $98.25) × 700
= $13 × 700
= $9,100
(b) 625; (c) $97.50
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