Isabella grows pumpkins. Her average variable cost (AVC), average total cost(ATC), and marginal cost (MC) of production are illustrated in the figure to the right.12.00-MC11.00-Assume the market for pumpkins is perfectly competitive and that the market priceis $5.00 per box.10.00-ATCAVCE9.00-If Isabella produces the profit-maximizing quantity of pumpkins, what will be herprofits?8.00-7.00-Isabella will earn a profit of $decimal places.)thousand. (Enter your response rounded to two6.00-8 5.00-What will Isabella's profit be if she shuts down in the short run and produces4.00-nothing?3.00-Isabella's profit will be $places.)thousand. (Enter your response rounded to two decimal2.00-1.00-0.00-Quantity (boxes in thousands)Price ($ per box)

In a competitive form there are large number of firms selling identical products thus having no…

productioni are lmustrated in the Tigure to the right. 12.00- MC 11.00 me the market for pumpkins is perfectly competitive and that the market price (0 per box. 10.00- ATC AVC 9.00- pella produces the profit-maximizing quantity of pumpkins, what will be her s? 8.00- 7.00- ella will earn a profit of $ thousand. (Enter your response rounded to two 6.00- mal places.) 5.00- t will Isabella's profit be if she shuts down in the short run and produces 4.00- ing? 3.00- ella's profit will be $ thousand. (Enter your response rounded to two decimal 2.00- es.) 1.00- 0.00- Quantity (boxes in thousands) Price ($ per box) of

productioni are lmustrated in the Tigure to the right. 12.00- MC 11.00 me the market for pumpkins is perfectly competitive and that the market price (0 per box. 10.00- ATC AVC 9.00- pella produces the profit-maximizing quantity of pumpkins, what will be her s? 8.00- 7.00- ella will earn a profit of $ thousand. (Enter your response rounded to two 6.00- mal places.) 5.00- t will Isabella's profit be if she shuts down in the short run and produces 4.00- ing? 3.00- ella's profit will be $ thousand. (Enter your response rounded to two decimal 2.00- es.) 1.00- 0.00- Quantity (boxes in thousands) Price ($ per box) of

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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