In the short run, at a market price of $45 per sweater, this firm will choose to produce sweaters 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 $45 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 $ thousand per day in the short run.
In the short run, at a market price of $45 per sweater, this firm will choose to produce sweaters 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 $45 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 $ thousand per day in the short run.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose that the market for cashmere sweaters 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.
100
90
Profit or Loss
80
60
50
40
ATC
30
20
AVC
MC
10
10
20
30
40
50
60
70
80
90
100
QUANTITY (Thousands of sweaters per day)
PRICE (Dollars per sweater)
Transcribed Image Text:In the short run, at a market price of $45 per sweater, this firm will choose to produce
sweaters 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 $45 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 $
thousand per day in the short run.
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