Answer in step by step with explanation.Don't use Ai. The graph shows the situation facing Flight Inc., a producer of running shoes.Draw a point to show the quantity of running shoes Flight produces and the priceof a pair of running shoes.Draw a shape to show Flight's economic profit or economic loss. Label it.120-100-Price and cost (dollars per pair)80-What is Flight's total revenue, total cost, and economic profit?60-a week.Flight's total revenue is $a week and Flight's total costs is $Economic profit is $a week.40-20-MRMCATD0+0 2550 75 100 125 150 175 200 225Quantity (pairs of shoes per week)>>> Draw only the objects specified in the quest

The profit-maximizing outcomeThe firm will produce at the point where MR = MC (this is at Q =…

Answered: The graph shows the situation facing…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 23RQ: What two lines on a cost curve diagram intersect at the shutdown point?

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Similar questions

Explain in words why a profit-maximizing film will not choose to produce at a quantity where marginal cost exceeds marginal revenue.
How does a perfectly competitive film calculate total revenue?
The AAA Aquarium Co. sells aquariums for 20 each. Fixed costs of production are 20. The total variable costs are 20 for one aquarium, 25 for two units, 35 for the three units, 50 for four units, and 80 for five units. In the form of a table, calculate total revenue, marginal revenue, total cost, and marginal cost for each output level (one to five units). What is the Profit-maximizing quantity of output? On one diagram, sketch the total revenue and total cost curves. On another diagram, sketch the marginal revenue and marginal cost curves.
Many films in the United States file for bankruptcy every year, yet they still continue operating. Why would they do this instead of completely shutting down?
Your company operates in a perfectly competitive market. You have been told that advertising can help you increase your sales in the short run. Would you create an aggressive advertising campaign for your product?
What two lines on a cost curve diagram intersect at the zero-profit point?
A firm in a competitive market receives 500 in total revenue and has marginal revenue of 10. What is the average revenue, and how many units were sold?
Finding a life partner is a complicated process that may take many years. It is hard to think of this process as being part of a very complex market, with a demand and a supply for partners. Think about how this market works and some of its characteristics, such as search costs. Would you consider it a perfectly competitive market?
A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
What is a price taker firm?
Perfectly competitive firm Doggies Paradise Inc. sells winter coats for dogs. Dog coats sell for 72 each. The fixed costs of production are 109. The total variable costs are 54 for one unit, 84 for two units, 114 for three units, 134 for four units, and 270 for five units. 111 the fauna of a table, calculate total revenue, marginal revenue, total cost and marginal cost for each output level (one to five units). On one diagram, sketch the total revenue and total cost curves. On another diagram, sketch the marginal revenue and marginal cost curves. What is the profit maximizing quantity?
Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the firm not simply increase its profits by selling an extremely high quantity?

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