Suppose that the graph below illustrates the cost curves of a perfectly competitive firm. If the market price is $109, then the firm maximizes its SR profit at ______ units of output and its SR profits are ______
$/Q?
MC
ATC
165a
b
c
d
e
116h
109j
k
70
50x
W
Z
AVC
38t
B
30
n
m
18v
u
0
72
114
164
198
233
Q
114; $15,390.
164: $7,544.
198; $11,682.
114: $0.
198; -$11,088.
198: $0 (zero).