2. please read instructions. show work. use graph. label. thank you **Educational Website Content: Analyzing Cost Curves and Profit Maximization**---**Instructions for Analyzing Cost Curves:**1. **Labeling Cost Curves:** - Ensure each curve on the graph is clearly labeled with its appropriate name. This typically includes the Marginal Cost (MC) and Average Total Cost (ATC) curves.2. **Modifying Cost Curves:** - Draw new cost curves where the Marginal Cost (MC) has increased by $10 and the Average Total Cost (ATC) has increased by $10 as well. - Identify and use at least four points on each curve to accurately outline the adjustments in the cost curves.3. **Determining Maximum Total Profit:** - Compute the maximum total profit for the new set of cost curves, given that the market price is $60 per unit. - To effectively illustrate this, the profit box should be highlighted on the graph alongside all relevant vertical and horizontal lines necessary for the calculation.4. **Evaluating Maximum Profit Outcome:** - Based on your analysis, identify the category of profit determined in the scenario: - Positive - Negative - Zero - Indeterminate**Graph Overview:**- **Axes Description:** - The vertical axis represents price, with increments marked from 0 to 105. - The horizontal axis represents quantity, marked from 0 to 55.- **Curve Description:** - The graph displays two distinct curves intersecting between the price of $65 and $75 at a quantity between 15 and 25. - The upward-sloping curve represents the typical behavior of the Marginal Cost (MC) curve, while the U-shaped curve is indicative of the Average Total Cost (ATC) curve.**Analysis Objectives:**- Use the graph to identify cost behavior and analyze how shifts in cost curves affect profitability.- Connect theoretical concepts with visual data for enhanced understanding of market price impacts on profit maximization in economics.By utilizing this structured approach, students will gain deeper insights into economic theory and the graphical representation of cost behaviors.

When the average cost declines with an increase in the production of goods, marginal cost is less…

Label each curve with its appropriate name. ● Carefully draw a new set of cost curves (and label them) such that the marginal cost (MC) has increased by $10 and the average total cost (ATC) has increased by $10. Use at least four points on each curve to determine the new cost curves. Show the maximum total profit for the new set of cost curves when the market price is $60/unit. You only need to show the profit box but you must draw all the vertical and horizontal lines used in the five steps for determining the maximum profit. The maximum profit that was determined in the question above is (circle your answer below): Positive Negative Zero You can't tell from the information provided

Label each curve with its appropriate name. ● Carefully draw a new set of cost curves (and label them) such that the marginal cost (MC) has increased by $10 and the average total cost (ATC) has increased by $10. Use at least four points on each curve to determine the new cost curves. Show the maximum total profit for the new set of cost curves when the market price is $60/unit. You only need to show the profit box but you must draw all the vertical and horizontal lines used in the five steps for determining the maximum profit. The maximum profit that was determined in the question above is (circle your answer below): Positive Negative Zero You can't tell from the information provided

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

2. please read instructions. show work. use graph. label. thank you

**Educational Website Content: Analyzing Cost Curves and Profit Maximization**

---

**Instructions for Analyzing Cost Curves:**

1. **Labeling Cost Curves:**
- Ensure each curve on the graph is clearly labeled with its appropriate name. This typically includes the Marginal Cost (MC) and Average Total Cost (ATC) curves.

2. **Modifying Cost Curves:**
- Draw new cost curves where the Marginal Cost (MC) has increased by $10 and the Average Total Cost (ATC) has increased by $10 as well.
- Identify and use at least four points on each curve to accurately outline the adjustments in the cost curves.

3. **Determining Maximum Total Profit:**
- Compute the maximum total profit for the new set of cost curves, given that the market price is $60 per unit.
- To effectively illustrate this, the profit box should be highlighted on the graph alongside all relevant vertical and horizontal lines necessary for the calculation.

4. **Evaluating Maximum Profit Outcome:**
- Based on your analysis, identify the category of profit determined in the scenario:
- Positive
- Negative
- Zero
- Indeterminate

**Graph Overview:**

- **Axes Description:**
- The vertical axis represents price, with increments marked from 0 to 105.
- The horizontal axis represents quantity, marked from 0 to 55.

- **Curve Description:**
- The graph displays two distinct curves intersecting between the price of $65 and $75 at a quantity between 15 and 25.
- The upward-sloping curve represents the typical behavior of the Marginal Cost (MC) curve, while the U-shaped curve is indicative of the Average Total Cost (ATC) curve.

**Analysis Objectives:**

- Use the graph to identify cost behavior and analyze how shifts in cost curves affect profitability.
- Connect theoretical concepts with visual data for enhanced understanding of market price impacts on profit maximization in economics.

By utilizing this structured approach, students will gain deeper insights into economic theory and the graphical representation of cost behaviors.

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