4. Profit maximization in the cost-curve diagram Suppose that the market for sports watches is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. PRICE (Dollars per watch) 100 90 80 70 60 50 30 ४ MC ATC AVC Profit or Loss ? PRICE (Dollars p 8 8 30 20 10 0 4 0 MC ATC AVC 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of watches) In the short run, at a market price of $80 per watch, this firm will choose to produce watches per day. On the preceding graph, use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss if the market price is $80 and the firm chooses to produce the quantity you already selected. Note: In the following question, enter a positive number, even if it represents a loss. The area of this rectangle indicates that the firm's would be s per day.