Economics 13th Edition by James Gwartney, Richard Stroup, Russell Sobel, David Macpherson

Exercise 15

The accompanying graph shows the short-run demand and cost situation for a price searcher in a market with low barriers to entry.
a. What level of output will maximize the firm's profit level?
b. What price will the firm charge?
c. How much revenue will the firm receive in this situation? How much is total cost? Total profit?
d. How will the situation change over time?