3. Profit maximization and loss minimization Suppose that the market for cashmere sweaters is a perfectly competitive market. The following graph shows the daily cost curves of a firm operating in this market. PRICE (Dollars per sweater) 100 go 90 Ge 80 70 60 50 40 30 20 10 ATC AVC MC 0 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of sweaters) Profit or Loss In the short run, at a market price of $80 per sweater, this firm will choose to produce sweaters per day.

3. Profit maximization and loss minimization Suppose that the market for cashmere sweaters is a perfectly competitive market. The following graph shows the daily cost curves of a firm operating in this market. PRICE (Dollars per sweater) 100 go 90 Ge 80 70 60 50 40 30 20 10 ATC AVC MC 0 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of sweaters) Profit or Loss In the short run, at a market price of $80 per sweater, this firm will choose to produce sweaters per day.

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 1SCQ: Firms ill a perfectly competitive market are said to be price takers that is, once the market...

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A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
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Typed plz Maintain accuracy and quality in your answer take care of plagiarism Answer completely both parts I will upvote for sure
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