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The Figure Given Below Shows the Revenue and Cost Curves

Question 60

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The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.2
The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.2    MC: Marginal cost curve MR: Marginal revenue curve ATC: Average-total-cost curve AVC: Average-variable-cost curve -Refer to Figure 10.2. If the marginal-revenue curve would have intersected the average-total-cost curve at the latter's lowest point and the firm maximized profit, then total profit would have been equal to: A) $30. B) zero. C) -$10. D) $20. E) -$20. MC: Marginal cost curve
MR: Marginal revenue curve
ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-Refer to Figure 10.2. If the marginal-revenue curve would have intersected the average-total-cost curve at the latter's lowest point and the firm maximized profit, then total profit would have been equal to:


A) $30.
B) zero.
C) -$10.
D) $20.
E) -$20.

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