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what is the profit at the profit-maximizing point

To determine the profit at the profit-maximizing point using this graph, we need to follow these steps:

1. **Locate the Profit-Maximizing Point**: The profit-maximizing quantity is where Marginal Cost (MC) intersects with Marginal Revenue (MR). From the graph, this occurs at around a quantity of 120 units.

2. **Determine the Price at this Quantity**: Follow the quantity line up to the Demand (D = AR) curve, which gives the price the firm can charge. It appears that at 120 units, the price is about $15.

3. **Find the Average Total Cost (ATC) at this Quantity**: From the same quantity of 120 units, trace up to the Average Total Cost (ATC) curve. The ATC at this quantity is around $10.

4. **Calculate Profit**:
   - **Total Revenue (TR)** = Price × Quantity = $15 × 120 = $1,800
   - **Total Cost (TC)** = ATC × Quantity = $10 × 120 = $1,200
   - **Profit** = Total Revenue - Total Cost = $1,800 - $1,200 = $600

So, the profit at the profit-maximizing point is approximately **$600**.

Would you like a more detailed explanation of these calculations or further analysis on this graph?

### Related Questions:
1. What happens to profit if the firm produces more than the profit-maximizing quantity?
2. How do changes in fixed costs affect the ATC curve and profit?
3. What is the role of the MR curve in determining profit-maximization?
4. How would the introduction of a competitor influence the market demand (D=AR) curve?
5. How can this analysis change in the short run vs. the long run?

### Tip:
The intersection of the MR and MC curves is crucial for identifying the quantity that maximizes profit or minimizes loss in economics. Always use this point as a starting reference when analyzing profit or cost behavior.

What is the profit at the profit-maximizing point?

Determine the profit at the profit-maximizing point by analyzing a cost-revenue graph where Marginal Cost intersects Marginal Revenue. Explore key concepts in economics such as profit, total revenue, and total cost. Suitable for college-level economics students.

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