The graph below provides a perfectly competitive graph for a firm in the short run, complete 1a – 1d using the graph. a. Assume the price of the firm’s product in the graph is $15 per unit. The firm will produce how many units per week, Why? b. At what price would the firm earn a zero economic profit in the short-run? Why? c. If the price the firm faces for it’s product is $6 per unit. What should the firm do? d. Assume the price of the firm’s product in Exhibit 1 is $10 per unit. The maximum profit the firm earns is? Why?
The graph below provides a perfectly competitive graph for a firm in the short run, complete 1a – 1d using the graph. a. Assume the price of the firm’s product in the graph is $15 per unit. The firm will produce how many units per week, Why? b. At what price would the firm earn a zero economic profit in the short-run? Why? c. If the price the firm faces for it’s product is $6 per unit. What should the firm do? d. Assume the price of the firm’s product in Exhibit 1 is $10 per unit. The maximum profit the firm earns is? Why?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
The graph below provides a
a. Assume the price of the firm’s product in the graph is $15 per unit. The firm will produce how many units per week, Why?
b. At what price would the firm earn a zero economic profit in the short-run? Why?
c. If the price the firm faces for it’s product is $6 per unit. What should the firm do?
d. Assume the price of the firm’s product in Exhibit 1 is $10 per unit. The maximum profit the firm earns is? Why?
![20
15
Price
and
costs 10
per unit
(dollars)
5
0
A
B
C
D
MC
ATC
AVC
500 1,000 1,500 2,000 2,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5c6577af-71fb-45c1-b8e8-e6dd9474cf66%2F6cc5e825-aecc-49a1-8dc5-0779f46ceb40%2Fpde1xbi_processed.png&w=3840&q=75)
Transcribed Image Text:20
15
Price
and
costs 10
per unit
(dollars)
5
0
A
B
C
D
MC
ATC
AVC
500 1,000 1,500 2,000 2,500
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