2. The following table shows the agency’s estimates of Joe’s demand and costs after the advertising campaign.

Quantity Sold/Hour ATC MC P

MR 1

2 3

4 5

6 7

8

$31.50 $12.50 $15.00 $15.00 18.75 13.17 10.50 9.00 8.08 7.50 7.13 6.00 2.00 2.50 3.00 3.50 4.00 4.50 13.75 12.50 11.25 10.00 8.75 7.50 6.25 12.50 10.00 7.50 5.00 2.50 0

2.50

a. Joe’s profit-maximizing quantity here is hamburgers.

b. His profit-maximizing price is .

c.

At this quantity and price, Joe’s economic profit would be .