9:50 PM Tue Dec 5 . . 52%O sakai.luc.edu C7 1250 2 of 3 30 1800 35 2450 C. Now assume that the per-unit cost and revenue for each firm is shown in graph below. Given the market equilibrium price from above, determine the following: Optimum output (q*): At the optimum level of output (q*) determine: m = (P - ATC) x q Illustrate the profit area in the diagram. $/unit MC $100 MR=P* ATC 56 40 18 20 25 30 Output 2 | Page9:50 PM Tue Dec 5 .. . 52% O Notes v Q 0 . .. T - Q 2 500 1B) optimum output = 25 Output (q) TFC ($) TVC ($) TC ($) Price (P) TR ($) Profit ($) 0 150 0 150 100 O 150 5 150 50 200 100 500 100 10 150 200 350 100 1000 350 15 150 450 600 100 1500 600 20 150 800 950 100 2000 850 25 150 1250 1400 100 2500 1100 30 150 1800 19.50 100 3000 1050 35 150 2450 2600 100 2500 900 IC) ATC = TC 1400 optimum output = 25 Q 25 = 56