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Cara likes to watch horror movies. She buys her movies in a perfectly competitive market. One of the firms in this market has the following
Cara likes to watch horror movies. She buys her movies in a perfectly competitive market. One of the firms in this market has the following cost structure. Assume movies can only be bought and sold in whole units.
Q | FC | MC | VC | TC | ATC | AVC |
1 | 2 | 7 | 7 | 2 | ||
2 | 3 | 8 | 4 | 1.5 | ||
3 | 5 | 10 | 3.33 | 1.66 | ||
4 | 8 | 13 | 3.25 | 2 | ||
5 | 13 | 18 | 3.6 | 2.6 |
If the market price is $4, what are the firm's profits? A) $3
B) $4
C) $5
D) $6
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