Figure 8 -8 Dollars per Unit MC ATC $10 d = MR = AR $8 $7 $5 200 275 475 575 Units of Output 7.a) In short-run equilibrium, the perfectly competitive firm of Figure 8.8 earns a total economic profit...

7.a) In short-run equilibrium, the perfectly competitive firm ofFigure 8.8earns a total economic profit of

a.	1000
b.	$950
c.	$825
d.	$1,425
e.	$575

Explain:

7.b) Assuming the perfectly competitive firm ofFigure 8.8survives in the long-run, it produces

a.	200
b.	275
c.	475
d.	575
e.	None of the above

Explain:

Choose and explain your answer above thoroughly--graphical, algebraically, numerically.

Please use as much detail as possible in your answers.

Extracted text: Figure 8 -8 Dollars per Unit MC ATC $10 d = MR = AR $8 $7 $5 200 275 475 575 Units of Output 7.a) In short-run equilibrium, the perfectly competitive firm of Figure 8.8 earns a total economic profit of а. 1000 b. $950 C. $825 d. $1,425 е. $575 Explain:


Extracted text: 7.b) Assuming the perfectly competitive fırm of Figure 8.8 survives in the long-run, it produces a. 200 b. 275 С. 475 d. 575 e. None of the above Explain: