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the graph below shows the average total (atc), average variable (avc), and marginal cost (mc) curves for a perfectly competitive apple producer. if the producer currently earns zero economic profit, what is the dollar amount of its total cost of production?

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Final answer:

To find the total cost of production for the apple producer at break-even, multiply the ATC, which is equal to the price in a perfectly competitive market, by the quantity produced.

Step-by-step explanation:

To determine the dollar amount of the total cost of production for a perfectly competitive apple producer currently earning zero economic profit, we must utilize the concept of average total cost (ATC). Since the firm is earning zero economic profit, this indicates that price (P) is equal to the average total cost (ATC) because total revenue is covering all the costs, including the opportunity costs.

To find the total cost, we can multiply the ATC by the quantity of output produced (Q), where ATC = P since the firm is in a perfectly competitive market where P = MR = MC at the equilibrium output. However, without specific figures for price or output quantity, we cannot calculate the exact total cost.

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