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How much economic profit or loss is this firm making? Price MC ATC $5.50 $5.00 AVC $4.50 $3.00 $2.00 $1.75 MR Demand 55 110 Quantity
How much economic profit or loss is this firm making? Price MC ATC $5.50 $5.00 AVC $4.50 $3.00 $2.00 $1.75 MR Demand 55 110 Quantity 165 O $96.25 profit O $55 loss $302.50 proht $55 profit O $247.50 proht Is the owner of this form likely to continue renting this number of DVDs in the long run? Price MC ATC $3.50 $5.00 AVC $4.50 $3.00 $2.00 $1.75 MR Demand Quantity 55 110 165 O No Yes, because price is greater than AVC Yes, because price is greater than ATC Not enough information to answer @ No, because the firm is incurring a loss
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