Suppose that the market price in a perfectly competitive industry is $50 per unit. 1.) Using the line drawing tool, draw the marginal revenue line given this price and label your line MR. 2.) Using the rectangle drawing tool, draw a rectangle showing the area of profit or loss of the firm and label it P/L. Carefully follow the instructions above, and only draw the required objects. Price, ATC, MC ($) Q 100- 90- MC 80- ATC 巳 70- AVC 60- 50- 40- 30- 20- 10- 0+ Quantity (per month) AFC

Suppose that the market price in a perfectly competitive industry is $50 per unit. 1.) Using the line drawing tool, draw the marginal revenue line given this price and label your line MR. 2.) Using the rectangle drawing tool, draw a rectangle showing the area of profit or loss of the firm and label it P/L. Carefully follow the instructions above, and only draw the required objects. Price, ATC, MC ($) Q 100- 90- MC 80- ATC 巳 70- AVC 60- 50- 40- 30- 20- 10- 0+ Quantity (per month) AFC

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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