At a market price of $21 a toy, what quantity does the firm produce in the short run and does the firm make a positive economic profit, a zero economic profit, or an economic loss?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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At a market price of $21 a toy, what quantity does the firm produce in the short run and does the firm make a positive economic profit, a zero economic profit, or an economic loss?

The figure below shows the short-run cost curves of a toy producer. The market has 1,000
identical producers and the table shows the market demand schedule for toys.
Price and cost (dollars per toy)
MC
24
Quantity
demanded
(dollars per (thousands of
toys per week)
1,000
1,500
2,000
2,500
21
ATC
Price
18
AVC
15
toy)
24
12
21
18
15
500
1,000 1.500 2.000 2.500
Output (toys per week)
12
3,000
Transcribed Image Text:The figure below shows the short-run cost curves of a toy producer. The market has 1,000 identical producers and the table shows the market demand schedule for toys. Price and cost (dollars per toy) MC 24 Quantity demanded (dollars per (thousands of toys per week) 1,000 1,500 2,000 2,500 21 ATC Price 18 AVC 15 toy) 24 12 21 18 15 500 1,000 1.500 2.000 2.500 Output (toys per week) 12 3,000
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