In the short run, at a market price of $20 per air freshener, this firm will choose to produce air fresheners On the preceding graph, use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss 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 thousand per day in the short run.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
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Chapter1: Making Economics Decisions
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4. Profit maximization in the cost-curve diagram
Suppose that the market for air fresheners 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 air freshener)
40
36
32
28
24
20
16
12
4
0
0
MC
ATC
2
4
8 10 12 14 16 18 20
QUANTITY (Thousands of air fresheners per day)
AVC
6
Profit or Loss
In the short run, at a market price of $20 per air freshener, this firm will choose to produce
air fresheners per day.
Transcribed Image Text:4. Profit maximization in the cost-curve diagram Suppose that the market for air fresheners 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 air freshener) 40 36 32 28 24 20 16 12 4 0 0 MC ATC 2 4 8 10 12 14 16 18 20 QUANTITY (Thousands of air fresheners per day) AVC 6 Profit or Loss In the short run, at a market price of $20 per air freshener, this firm will choose to produce air fresheners per day.
In the short run, at a market price of $20 per air freshener, this firm will choose to produce
air fresheners 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 $20 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
thousand per day in the short run.
Transcribed Image Text:In the short run, at a market price of $20 per air freshener, this firm will choose to produce air fresheners 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 $20 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 thousand per day in the short run.
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