9. Profit maximization in the cost -curve diagram The following graph plots daily cost curves for a firm operating in the competitive market for porch swings.Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. In the short run, given a market price equal to $50 per pressure cooker, the firm should produce a daily quantity of pressure cookers. 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 $50 and the quantity of production from your s answer. Note: In the following question, enter a posi profit The rectangular area represents a short-run loss ber regardless of whether the firm earns a profit or incurs a loss. of thousand per day for the firm. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. ? 100 8 90 8 PRICE (Dollars per pressure cooker) 8 8 2 8 10 0 。 MO ATC AVC 5 10 15 20 25 30 35 45 QUANTITY (Thousands of pressure cookers per day) 50 Note: In the following question, enter a posit The rectangular area represents a short-run Profit or Loss In the short run, given a market price equal to $50 per pressure cooker, the firm should produce a daily quantity of 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 $50 and the quantity of production from your sanswer. pressure cookers. profit loss ber regardless of whether the firm earns a profit or incurs a loss. of S thousand per day for the firm.
9. Profit maximization in the cost -curve diagram The following graph plots daily cost curves for a firm operating in the competitive market for porch swings.Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. In the short run, given a market price equal to $50 per pressure cooker, the firm should produce a daily quantity of pressure cookers. 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 $50 and the quantity of production from your s answer. Note: In the following question, enter a posi profit The rectangular area represents a short-run loss ber regardless of whether the firm earns a profit or incurs a loss. of thousand per day for the firm. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. ? 100 8 90 8 PRICE (Dollars per pressure cooker) 8 8 2 8 10 0 。 MO ATC AVC 5 10 15 20 25 30 35 45 QUANTITY (Thousands of pressure cookers per day) 50 Note: In the following question, enter a posit The rectangular area represents a short-run Profit or Loss In the short run, given a market price equal to $50 per pressure cooker, the firm should produce a daily quantity of 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 $50 and the quantity of production from your sanswer. pressure cookers. profit loss ber regardless of whether the firm earns a profit or incurs a loss. of S thousand per day for the firm.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:9. Profit maximization in the cost -curve diagram The following graph plots daily cost curves for a firm
operating in the competitive market for porch swings.Hint: Once you have positioned the rectangle on
the graph, select a point to observe its coordinates. In the short run, given a market price equal to $50
per pressure cooker, the firm should produce a daily quantity of pressure cookers. 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 $50 and the quantity of production from your s answer. Note: In the following
question, enter a posi profit The rectangular area represents a short - run loss ber regardless of whether
the firm earns a profit or incurs a loss. of thousand per day for the firm.
Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates.
PRICE (Dollars per pressure cooker)
100
8
90
80
70
30
20
10
0
0
5
MC
ATC
AVC
10 15 20 25 30
45 50
QUANTITY (Thousands of pressure cookers per day)
Profit or Loss
In the short run, given a market price equal to $50 per pressure cooker, the firm should produce a daily quantity of
of $
pressure cookers.
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
$50 and the quantity of production from your s answer.
profit
Note: In the following question, enter a posit loss ber regardless of whether the firm earns a profit or incurs a loss.
The rectangular area represents a short-run
thousand per day for the firm.
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