A graph of Price versus Quantity shows a straight line M C increasing linearly from 1 2 to 9 18 and a curved line A T C which decreases at a decreasing rate reaching a minimum where MC = ATC and they
The firm will earn zero economic profit at the point where MC and ATC intersect, which is at a price of $6 and quantity of 3. Therefore, the answer is (a) $6.
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