d. Suppose economic conditions change in such a way that the demand curve for your company shifts left. i. Draw a demand curve on the bottom graph on Figure 1 that leads to zero economic profits. ii. Draw a demand curve on the bottom graph on Figure 1 such that any further leftward demand shift will cause you to shutdown.
d. Suppose economic conditions change in such a way that the demand curve for your company shifts left. i. Draw a demand curve on the bottom graph on Figure 1 that leads to zero economic profits. ii. Draw a demand curve on the bottom graph on Figure 1 such that any further leftward demand shift will cause you to shutdown.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Please note: Parts a, b, and c are already answered. Please answer part d which has two subparts.
You are the manager of a
d. Suppose economic conditions change in such a way that the demand curve for your company shifts left.
i. Draw a demand curve on the bottom graph on Figure 1 that leads to zero economic profits.
ii. Draw a demand curve on the bottom graph on Figure 1 such that any further leftward demand shift will cause you to shutdown.
![MC
ATC
AVC
Demand
AFC
MR
MC
ATC
AVC
Demand
AFC
Figure 1: Demand, and costs for a monopolist.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc6a2d037-73b6-48ba-b309-d50c11ff0884%2Fbb316a84-4103-4191-9c6d-15e09b927924%2F6sx9nu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:MC
ATC
AVC
Demand
AFC
MR
MC
ATC
AVC
Demand
AFC
Figure 1: Demand, and costs for a monopolist.
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