ons Question 7 1 point s saved Units of Output Average Fixed

ons Question 7 (1 point) s saved Units of Output Average Fixed Costs Average Variable marginal Cost Costs $10 $8 $20 $10 $7 $5 $10 $6 $2 $18 $29 $13

1. 5 video games

This is because under Perfect competition, P = MC i.e. when Price = $ 29 then equilibrium quantity is where MC = 29 i.e. 5 units

2. Total revenue = Price x Quantity = 29 x 5 = 145

Total Cost = Total fixed cost + Total variable cost = AFC x Q + AVC x Q = 4 x 5 + 13 x 5 = 20 + 65 = $ 85

Profit = TR - TC = 145 - 85 = $ 60