Draw a perfectly elastic demand curve on top of a standard U-shaped average total cost curve. Now add in the marginal cost and marginal revenue curves. Find the profit maximizing point, MR = MC. Indicate the firms total revenues and total cost.
Draw a perfectly elastic demand curve on top of a standard U-shaped average total cost curve. Now add in the marginal cost and marginal revenue curves. Find the profit maximizing point, MR = MC. Indicate the firms total revenues and total cost.