Homework Help is Here – Start Your Trial Now!
Business
Economics
4. Profit maximization in the cost-curve diagram The following graph plots daily cost curves for a firm operating in the competitive market for running shorts. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. 40 40 36 32 28 20 24 20 20 PRICE (Dollars per short) 160 12 ATC AVC 8 MC 4 Profit or Loss 0 0 2 4 6 8 10 12 14 16 18 20 20 QUANTITY (Thousands of shorts per day) In the short run, given a market price equal to $20 per short, the firm should produce a daily quantity of shorts. 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 $20 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 of $ thousand per day for the firm.

4. Profit maximization in the cost-curve diagram The following graph plots daily cost curves for a firm operating in the competitive market for running shorts. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. 40 40 36 32 28 20 24 20 20 PRICE (Dollars per short) 160 12 ATC AVC 8 MC 4 Profit or Loss 0 0 2 4 6 8 10 12 14 16 18 20 20 QUANTITY (Thousands of shorts per day) In the short run, given a market price equal to $20 per short, the firm should produce a daily quantity of shorts. 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 $20 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 of $ thousand per day for the firm.

Principles of Economics 2e
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 6SCQ: A firms marginal cost curve above the average variable cost curve is equal to the films individual...
See similar textbooks
icon
Related questions
Question
4. Profit maximization in the cost-curve diagram The following graph plots daily cost curves for a firm operating in the competitive market for running shorts. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. 40 40 36 32 28 20 24 20 20 PRICE (Dollars per short) 160 12 ATC AVC 8 MC 4 Profit or Loss 0 0 2 4 6 8 10 12 14 16 18 20 20 QUANTITY (Thousands of shorts per day)
Transcribed Image Text:4. Profit maximization in the cost-curve diagram The following graph plots daily cost curves for a firm operating in the competitive market for running shorts. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. 40 40 36 32 28 20 24 20 20 PRICE (Dollars per short) 160 12 ATC AVC 8 MC 4 Profit or Loss 0 0 2 4 6 8 10 12 14 16 18 20 20 QUANTITY (Thousands of shorts per day)
In the short run, given a market price equal to $20 per short, the firm should produce a daily quantity of shorts. 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 $20 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 of $ thousand per day for the firm.
Transcribed Image Text:In the short run, given a market price equal to $20 per short, the firm should produce a daily quantity of shorts. 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 $20 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 of $ thousand per day for the firm.
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
ECON MICRO
ECON MICRO
Economics
ISBN:
9781337000536
Author:
William A. McEachern
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Microeconomic Theory
Microeconomic Theory
Economics
ISBN:
9781337517942
Author:
NICHOLSON
Publisher:
Cengage
SEE MORE TEXTBOOKS