1. Total cost is ATC x Q at 5 units of output ATC =7 so total cost is 5 x 7 = 35. Total revenue is P x Q which is 10 x 5 = 50. Profit is TR - TC = 50 - 35 = 15.
2. We can see that average profit is 10 - 7 = 3. 5 units are sold so 5 x 3 = 15.
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