Exercise 7

1. The following figure shows the costs of Quick Copy, one of the copy shops near campus. It operates in a perfectly competitive market. If the market price of copying is 10 cents per page:

a)Identify Quick Copy's Profit maximising output

b)Explain why or why not Quick Copy is making Economic profit

in class exercise 7 References Mailings Review View Help Search A" A Aa- A AA - EE EE ANT AaBbC AaBbCcDd AaBbCcDd AaBbC AaBbCc] AaBbCCD A - 2 - A - A Heading 4 1 Normal 1 No Spac... Heading 1 Heading 2 Heading 5 ont Paragraph Styles Exercise 7 1. The following figure shows the costs of Quick Copy, one of the copy shops near campus. It operates in a perfectly competitive market. If the market price of copying is 10 cents per page: a) Identify Quick Copy's Profit maximising output b) Explain why or why not Quick Copy is making Economic profit Cost (cents MC per page) 10 ATC - - -"- -- MR1 MR2 60 70 80 Quantity (pages per hour