Draw a graph with MC, AVC, ATC, and P lines on it (assume perfect competition). make...
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Draw a graph with MC, AVC, ATC, and P lines on it (assume perfect competition). make sure the price line is placed so the firm can make a profit. Label
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the price at which the firm would shutdown
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the price at which the firm would breakeven
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the profit maximizing output
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the profit earned
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Homework Answers
In following graph,
(i) Firm will shutdown at the shutdown price of P1 (where MC intersects the minimum point of AVC).
(ii) Firm will break-even at the break-even price of P2 (where MC intersects the minimum point of ATC).
(iii) Profit is maximized at price P3 with output Q3.
(iv) Profit earned equals area of rectangle P3ABC.
Add Answer to:
Draw a graph with MC, AVC, ATC, and P lines on it (assume
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A firm's ATC, AVC, MR, and MC curves are shown in the graph below. Profit-Maximizing Point Profit-Maximizing Point Economic Profit (shaded region) 54+ 48 IMR Cost and revenues AVC HHHHHHHHHHHHHHHHHHHHO 044 Reset 8 12 16 20 24 28 32 36 40 44 48 Output a) Draw the short-run profit-maximizing point and the economic profit region. Select which item you want to draw from the drop-down menu at the top of the graph to draw that item. b) What is the...
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help. agricultural economic
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Complete the following table and graph AVC, ATC, and MC. The best way to submit this assignment is by cutting and pasti...
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A firm's ATC, AVC, MR, and MC curves are shown in the graph below. Profit-Maximizing Point Profit-Maximizing Point Economic Profit (shaded region) 54+ 48 IMR Cost and revenues AVC HHHHHHHHHHHHHHHHHHHHO 044 Reset 8 12 16 20 24 28 32 36 40 44 48 Output a) Draw the short-run profit-maximizing point and the economic profit region. Select which item you want to draw from the drop-down menu at the top of the graph to draw that item. b) What is the...
help. agricultural economic
2. Use the following graph to answer the following questions: P/ MC ATC /AVC MR 20 2528 50 a. What price is charged by the monopol order to maximize profits? b. Calculate the total revenue accruing to the mo- nopolist at the profit-maximizing output. C. Calculate the total cost to the monopolist at the profit-maximizing output. d. Calculate the profit for the monopolist. e. Calculate the total variable and fixed costs of the monopolist at the profit-maximizing...
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Complete the following table and graph AVC, ATC, and MC. The best way to submit this assignment is by cutting and pasting the table into an Excel spreadsheet or a Word Document for the calculations. If you do want or cannot use Excel or Word, you can complete the table and then submit a picture of the table. I want to see, whether you are able to complete the table correctly. Submit the completed table and answers to the questions...
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