The graph shows a firm in a perfectly competitive market making a profit. The graph includes the firm's marginal cost curve, average total cost curve, and average variable cost curve. Assume the market price is $28. 1.) Use the line drawing tool to graph the firm's demand curve. Label this line 'Demand'. 2.) Use the point drawing tool to plot the firm's profit-maximizing price and quantity. Label this point 'Point A'. 3.) Use the rectangle drawing tool to shade in the firm's profit (Profit/Loss). Properly label this shaded area. Carefully follow the instructions above, and only draw the required objects. Price and cost 48- MC 44- 40- 36- 32- ATC 28- AVC 24- 20- 16- 12- 8- 4- Quantity

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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The graph shows a firm in a perfectly competitive market making a profit. The graph includes the firm's marginal cost curve,
average total cost curve, and average variable cost curve.
Assume the market price is $28.
1.) Use the line drawing tool to graph the firm's demand curve. Label this line 'Demand'.
2.) Use the point drawing tool to plot the firm's profit-maximizing price and quantity. Label this point 'Point A'.
3.) Use the rectangle drawing tool to shade in the firm's profit (Profit/Loss). Properly label this shaded area.
Carefully follow the instructions above, and only draw the required objects.
Price and cost
48-
MC
44-
40-
36-
32-
ATC
28-
AVC
24-
20-
16-
12-
8-
4-
Quantity
Transcribed Image Text:The graph shows a firm in a perfectly competitive market making a profit. The graph includes the firm's marginal cost curve, average total cost curve, and average variable cost curve. Assume the market price is $28. 1.) Use the line drawing tool to graph the firm's demand curve. Label this line 'Demand'. 2.) Use the point drawing tool to plot the firm's profit-maximizing price and quantity. Label this point 'Point A'. 3.) Use the rectangle drawing tool to shade in the firm's profit (Profit/Loss). Properly label this shaded area. Carefully follow the instructions above, and only draw the required objects. Price and cost 48- MC 44- 40- 36- 32- ATC 28- AVC 24- 20- 16- 12- 8- 4- Quantity
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