a. What is the firm's profit-maximizing output level? units What price will the firm charge? $ b. Will this firm produce in the short-run? How do you know? c. What is the firm's profit or loss per unit at this level of output? [Use a negative sign to indicate losses.]$ Label this area on the graph. d. What is the total profit or loss at this level of output? Instructions: Use the tool provided 'Profit/Loss' to illustrate the area of profit (or loss) that occurs at this level of output. Drag the points to move or resize. e. What will happen to this firm in the long-run? Will it remain in businesses? Will it earn a profit? Describe what will happen to this industry in the long run. Be as specific as possible.
a. What is the firm's profit-maximizing output level? units What price will the firm charge? $ b. Will this firm produce in the short-run? How do you know? c. What is the firm's profit or loss per unit at this level of output? [Use a negative sign to indicate losses.]$ Label this area on the graph. d. What is the total profit or loss at this level of output? Instructions: Use the tool provided 'Profit/Loss' to illustrate the area of profit (or loss) that occurs at this level of output. Drag the points to move or resize. e. What will happen to this firm in the long-run? Will it remain in businesses? Will it earn a profit? Describe what will happen to this industry in the long run. Be as specific as possible.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please answer question attached.
![a. What is the firm's profit-maximizing output level?
units
What price will the firm charge? $
b. Will this firm produce in the short-run? How do you know?
c. What is the firm's profit or loss per unit at this level of output? [Use a negative sign to indicate losses.] $
d. What is the total profit or loss at this level of output? $
Instructions: Use the tool provided 'Profit/Loss' to illustrate the area of profit (or loss) that occurs at this level of output. Drag the points
Label this area on the graph.
to move or resize.
e. What will happen to this firm in the long-run? Will it remain in businesses? Will it earn a profit?
Describe what will happen to this industry in the long run. Be as specific as possible.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc777eb6c-5f00-442c-a5ae-30c50b2299ca%2F347bc8f4-6928-40ca-b730-5451a092ef14%2Fs675nvz_processed.png&w=3840&q=75)
Transcribed Image Text:a. What is the firm's profit-maximizing output level?
units
What price will the firm charge? $
b. Will this firm produce in the short-run? How do you know?
c. What is the firm's profit or loss per unit at this level of output? [Use a negative sign to indicate losses.] $
d. What is the total profit or loss at this level of output? $
Instructions: Use the tool provided 'Profit/Loss' to illustrate the area of profit (or loss) that occurs at this level of output. Drag the points
Label this area on the graph.
to move or resize.
e. What will happen to this firm in the long-run? Will it remain in businesses? Will it earn a profit?
Describe what will happen to this industry in the long run. Be as specific as possible.
Transcribed Image Text:The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a firm are shown in the figure below.
Price/Cost
$50
Tools
MC
$40
ATC
Profit / Loss
AVC
$30
Pt. A
$20
P = MR
$10
10
20
30
40
50
Quantity
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