3. Profit maximization in the cost-curve diagram The following graph plots daily cost curves for a firm operating in the competitive market for motor scooters. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. PRICE (Dollars per scooter) 100 90 80 228 22 50 40 ATC 20 MC AVC 10 0 88 50 60 70 80 90 100 0 10 20 30 40 QUANTITY (Thousands of scooters per day) Profit or Loss ? In the short run, given a market price equal to $45 per scooter, the firm should produce a daily quantity of 30,000 scooters. On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $45 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run profit of $150 thousand per day for the firm.
3. Profit maximization in the cost-curve diagram The following graph plots daily cost curves for a firm operating in the competitive market for motor scooters. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. PRICE (Dollars per scooter) 100 90 80 228 22 50 40 ATC 20 MC AVC 10 0 88 50 60 70 80 90 100 0 10 20 30 40 QUANTITY (Thousands of scooters per day) Profit or Loss ? In the short run, given a market price equal to $45 per scooter, the firm should produce a daily quantity of 30,000 scooters. On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $45 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run profit of $150 thousand per day for the firm.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
Section9.4: Comparing Monopoly And Perfect Competition
Problem 1YTE
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Transcribed Image Text:3. Profit maximization in the cost-curve diagram
The following graph plots daily cost curves for a firm operating in the competitive market for motor scooters.
Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates.
PRICE (Dollars per scooter)
100
90
80
228 22
50
40
ATC
20
MC
AVC
10
0
88
50 60 70 80
90 100
0 10 20 30 40
QUANTITY (Thousands of scooters per day)
Profit or Loss
?
In the short run, given a market price equal to $45 per scooter, the firm should produce a daily quantity of 30,000
scooters.
On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of
$45 and the quantity of production from your previous answer.
Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss.
The rectangular area represents a short-run profit
of
$150 thousand per day for the firm.
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