Poinsettia growing is a perfectly competitive industry and all growers have the same costs. The market price of poinsettias is $16 a pot and each grower maximizes profit by producing 600 pots a week. Average total cost of producing poinsettias is $13 a pot and average variable cost is $9 a pot. Minimum average variable cost is $5 a pot. Calculate each grower's economic profit or loss in the short run.

Poinsettia growing is a perfectly competitive industry and all growers have the same costs. The market price of poinsettias is $16 a pot and each grower maximizes profit by producing 600 pots a week. Average total cost of producing poinsettias is $13 a pot and average variable cost is $9 a pot. Minimum average variable cost is $5 a pot. Calculate each grower's economic profit or loss in the short run.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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