Market Representative Firm MC a MR = P $3.50– - АТС b $2.50. AVC 50,000 350 400 Quantity (Q) Output (Q) The diagram above depicts overall market supply and demand on the left, and the cost curves for a representative firm supplying in that market on the right. At the price $3.50, the firm: should shutdown. is earning a negative economic profit (loss). O is making neither a profit nor a loss. It is breaking even. O is earning a positive economic profit. Price $$

Market Representative Firm MC a MR = P $3.50– - АТС b $2.50. AVC 50,000 350 400 Quantity (Q) Output (Q) The diagram above depicts overall market supply and demand on the left, and the cost curves for a representative firm supplying in that market on the right. At the price $3.50, the firm: should shutdown. is earning a negative economic profit (loss). O is making neither a profit nor a loss. It is breaking even. O is earning a positive economic profit. Price $$

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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MC АТС $25.00 AVC $19.50 -- $15.00 $12.50 - - 30 40 50 60 Output (Q) For the firm shown in the diagram above, its Long Run Supply Curve is its curve for any price greater than ATC; $19.50 MC; $12.50 AVC; $12.50 MC; $19.50
E4 A Firm ís short-run total cost function is: T C = 4q2 - 2q + 7 The Firm sells in a perfectly competitive market and the ruling price is p = 50 (a) Find the output level that maximizes profits. Show you have a maximum. (b) Find the output level that minimizes average cost, AC. Show you have a minimum. (c) Sketch the graphs of total cost and total revenue with the same axes (d) Sketch the graph of the profit function.
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Please answer F and show steps for the graph
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