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Consider Unico Doughnut, a doughnut shop in a competitive price-searcher market. The following graph shows its demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve. Assume that the shop is operating in the short run. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity. If the shop is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. If the shop is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. PRICE (Dollars per doughnut) 4.00 3.50 3.00 2.50 ATC 2.00 1.50 1.00 0.50 MC Demand MR 0 0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 QUANTITY (Thousands of doughnuts) Profit Maximizing Outcome Profit Loss ? At the profit-maximizing output and price, the shop's profit is equal to $ Given the profit-maximizing choice of output and price, there are . (Hint: Be sure to enter a minus sign if profit is negative.) shops in the industry than there would be in long-run equilibrium.

Consider Unico Doughnut, a doughnut shop in a competitive price-searcher market. The following graph shows its demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve. Assume that the shop is operating in the short run. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity. If the shop is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. If the shop is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. PRICE (Dollars per doughnut) 4.00 3.50 3.00 2.50 ATC 2.00 1.50 1.00 0.50 MC Demand MR 0 0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 QUANTITY (Thousands of doughnuts) Profit Maximizing Outcome Profit Loss ? At the profit-maximizing output and price, the shop's profit is equal to $ Given the profit-maximizing choice of output and price, there are . (Hint: Be sure to enter a minus sign if profit is negative.) shops in the industry than there would be in long-run equilibrium.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider Unico Doughnut, a doughnut shop in a competitive price-searcher market. The following graph shows its demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve. Assume that the shop is operating in the short run. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity. If the shop is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. If the shop is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. PRICE (Dollars per doughnut) 4.00 3.50 3.00 2.50 ATC 2.00 1.50 1.00 0.50 MC Demand MR 0 0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 QUANTITY (Thousands of doughnuts) Profit Maximizing Outcome Profit Loss ? At the profit-maximizing output and price, the shop's profit is equal to $ Given the profit-maximizing choice of output and price, there are . (Hint: Be sure to enter a minus sign if profit is negative.) shops in the industry than there would be in long-run equilibrium.
Transcribed Image Text:Consider Unico Doughnut, a doughnut shop in a competitive price-searcher market. The following graph shows its demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve. Assume that the shop is operating in the short run. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity. If the shop is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. If the shop is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. PRICE (Dollars per doughnut) 4.00 3.50 3.00 2.50 ATC 2.00 1.50 1.00 0.50 MC Demand MR 0 0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 QUANTITY (Thousands of doughnuts) Profit Maximizing Outcome Profit Loss ? At the profit-maximizing output and price, the shop's profit is equal to $ Given the profit-maximizing choice of output and price, there are . (Hint: Be sure to enter a minus sign if profit is negative.) shops in the industry than there would be in long-run equilibrium.
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