1. The charged is determined by the market quilibrium. For a perfectly competitive firm, it is lepicted as a horizontal line on the firm level graph, and Iso equals demand and marginal revenue (D=MR). minimum ATC profit-maximizing output losses profits ATC at profit-maximizing output price . The is one of the pieces of information needed calculate profits/losses for the firm. It can be found once quantity produced is chosen by a firm. Graphically, is the point on the average total cost curve once this hoice is made. It also helps determine two vertices of he profit/loss rectangle. O minimum ATC ATC at the profit-maximizing output profit price O profit-maximizing output b. The chosen by a firm will be determined by the intersection of the firm-level demand curve and the marginal cost curve (which is their firm level supply curve). minimum ATC losses price ATC at the profit-maximizing output profits profit-maximizing output d. can be calculated as (P - ATC). Q. It can be represented graphically as a rectangle, where Q and the vertical axis establish the long sides and P-ATC establishes the short sides. If ATC at the profit- maximizing quantity is greater than price, this is what you call the calculation. The quantity at minimum ATC Profit-maximizing output Price Profits Minimum ATC
1. The charged is determined by the market quilibrium. For a perfectly competitive firm, it is lepicted as a horizontal line on the firm level graph, and Iso equals demand and marginal revenue (D=MR). minimum ATC profit-maximizing output losses profits ATC at profit-maximizing output price . The is one of the pieces of information needed calculate profits/losses for the firm. It can be found once quantity produced is chosen by a firm. Graphically, is the point on the average total cost curve once this hoice is made. It also helps determine two vertices of he profit/loss rectangle. O minimum ATC ATC at the profit-maximizing output profit price O profit-maximizing output b. The chosen by a firm will be determined by the intersection of the firm-level demand curve and the marginal cost curve (which is their firm level supply curve). minimum ATC losses price ATC at the profit-maximizing output profits profit-maximizing output d. can be calculated as (P - ATC). Q. It can be represented graphically as a rectangle, where Q and the vertical axis establish the long sides and P-ATC establishes the short sides. If ATC at the profit- maximizing quantity is greater than price, this is what you call the calculation. The quantity at minimum ATC Profit-maximizing output Price Profits Minimum ATC
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 41P: A computer company produces affordable, easy-to-use home computer systems and has fixed costs of...
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Question
![a. The
charged is determined by the market
equilibrium. For a perfectly competitive firm, it is
depicted as a horizontal line on the firm level graph, and
also equals demand and marginal revenue (D=MR).
minimum ATC
profit-maximizing output
losses
profits
ATC at profit-maximizing output
price
c. The
is one of the pieces of information needed
to calculate profits/losses for the firm. It can be found
once quantity produced is chosen by a firm. Graphically,
it is the point on the average total cost curve once this
choice is made. It also helps determine two vertices of
the profit/loss rectangle.
minimum ATC
ATC at the profit-maximizing output
profit
price
profit-maximizing output
quantity at minimum ATC
b. The
chosen by a firm will be determined by the
intersection of the firm-level demand curve and the
marginal cost curve (which is their firm level supply
curve).
minimum ATC
losses
price
ATC at the profit-maximizing output
profits
profit-maximizing output
d. can be calculated as (P - ATC) . Q. It can
be represented graphically as a rectangle, where Q and
the vertical axis establish the long sides and P-ATC
establishes the short sides. If ATC at the profit-
maximizing quantity is greater than price, this is what
you call the calculation.
The quantity at minimum ATC
Profit-maximizing output
Price
Profits
Minimum ATC
Losses](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc421684f-ca43-44ee-8152-56b76e1ae0e1%2F056ba25d-31ae-41f1-9279-7b3f62671239%2Fu87jpx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:a. The
charged is determined by the market
equilibrium. For a perfectly competitive firm, it is
depicted as a horizontal line on the firm level graph, and
also equals demand and marginal revenue (D=MR).
minimum ATC
profit-maximizing output
losses
profits
ATC at profit-maximizing output
price
c. The
is one of the pieces of information needed
to calculate profits/losses for the firm. It can be found
once quantity produced is chosen by a firm. Graphically,
it is the point on the average total cost curve once this
choice is made. It also helps determine two vertices of
the profit/loss rectangle.
minimum ATC
ATC at the profit-maximizing output
profit
price
profit-maximizing output
quantity at minimum ATC
b. The
chosen by a firm will be determined by the
intersection of the firm-level demand curve and the
marginal cost curve (which is their firm level supply
curve).
minimum ATC
losses
price
ATC at the profit-maximizing output
profits
profit-maximizing output
d. can be calculated as (P - ATC) . Q. It can
be represented graphically as a rectangle, where Q and
the vertical axis establish the long sides and P-ATC
establishes the short sides. If ATC at the profit-
maximizing quantity is greater than price, this is what
you call the calculation.
The quantity at minimum ATC
Profit-maximizing output
Price
Profits
Minimum ATC
Losses
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