The graph to the right depicts the average cost curves and the marginal cost curve for a typical firm in a perfectly competitive industry. 1.) Using the line drawing tool, draw the firm's demand curve at a market price such that the firm is breaking even. Label your curve 'd₁'. 2.) Using the line drawing tool, draw the firm's demand curve at a market price such that the firm is at its shutdown price. Label your curve 'd₂'. Note: if you are not prompted for a label, you have used the wrong drawing tool. Price, ATC, MC ($) 100- 90- 80- 70- 60- 50- 40- 30- 20- 10- 0- MC Quantity (per month) ATC AVC

The graph to the right depicts the average cost curves and the marginal cost curve for a typical firm in a perfectly competitive industry. 1.) Using the line drawing tool, draw the firm's demand curve at a market price such that the firm is breaking even. Label your curve 'd₁'. 2.) Using the line drawing tool, draw the firm's demand curve at a market price such that the firm is at its shutdown price. Label your curve 'd₂'. Note: if you are not prompted for a label, you have used the wrong drawing tool. Price, ATC, MC ($) 100- 90- 80- 70- 60- 50- 40- 30- 20- 10- 0- MC Quantity (per month) ATC AVC

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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M10
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