https://file.aiquickdraw.com/mathbot/file/172919208809203iy40ju.jpg

The graph in the image shows the price, marginal cost (MC), average total cost (ATC), marginal revenue (MR), and demand curves for a monopolistically competitive firm. Let's break down the components and answer the given questions.

### a. **What is total revenue for this firm?**

To find total revenue (TR):
\[
TR = \text{Price} \times \text{Quantity}
\]
From the graph:
- Quantity = 3.25 units
- Price = $17.50

\[
TR = 17.50 \times 3.25 = 56.875
\]
Rounding to two decimal places:
\[
\boxed{TR = 56.88}
\]

### b. **What is total cost for this firm?**

To find total cost (TC):
\[
TC = \text{Average Total Cost (ATC)} \times \text{Quantity}
\]
From the graph:
- ATC ≈ $12 at a quantity of 3.25 units.
- Quantity = 3.25 units

\[
TC = 12 \times 3.25 = 39
\]
Rounding to two decimal places:
\[
\boxed{TC = 39.00}
\]

### c. **What is this firm's economic profit?**

Economic profit (π) is calculated as:
\[
\pi = \text{Total Revenue (TR)} - \text{Total Cost (TC)}
\]
Using the values found:
\[
\pi = 56.88 - 39 = 17.88
\]
Rounding to two decimal places:
\[
\boxed{\pi = 17.88}
\]

Would you like further explanation or details on any of the steps?

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Here are 5 related questions to deepen your understanding:
1. What does the marginal cost curve represent for a firm?
2. Why is the demand curve downward-sloping for a monopolistically competitive firm?
3. How is economic profit different from accounting profit?
4. What happens to a firm's profit in the long run under monopolistic competition?
5. How can changes in the ATC curve affect a firm's profit?

**Tip:** In monopolistic competition, firms may have short-term economic profits, but in the long run, these profits tend to disappear due to market entry by new competitors.

Consider the diagram below depicting the revenue and cost conditions faced by a monopolistically competitive firm, and then answer the following questions: a. What is total revenue for this firm? b. What is total cost for this firm? c. What is this firm's economic profit?

This problem covers calculating total revenue, total cost, and economic profit for a firm in monopolistic competition. Based on the graph, students will apply formulas to determine price, quantity, and cost. Key concepts include marginal cost, demand, and average total cost.

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