# Profit maximization in the cost curve diagram suppose

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4. Profit maximization in the cost-curve diagramSuppose that the market for microwave ovens is a competitive market. The following graph shows the daily cost curves of a firm operating in this market.Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point.In the short run, at a market price of \$50 per oven, this firm will choose to produce 37,500 ovens per day.
Econ 121- Principles of MicroeconomicsChapter 14 HomeworkOn the preceding graph, use the blue rectangle (circle symbols) to shade thearea representing the firm’s profit or loss if the market price is \$50 and the firm chooses to produce the quantity you already selected.Note: In the following question, enter a positive number, even if it represents a loss.The area of this rectangle indicates that the firm’s loss would be \$375thousand per day in the short run.
Econ 121- Principles of MicroeconomicsChapter 14 Homework5. Profit maximization and shutting down in the short runSuppose that the market for frying pans is a competitive market. The following graph shows the daily cost curves of a firm operating in this market.
Econ 121- Principles of MicroeconomicsChapter 14 HomeworkFor each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. Assume that if the firm is indifferent between producing and shutting down, it will produce. (Hint: You can select the purple points [diamond symbols] on the previous graph to see precise information on average variable cost.)
Econ 121- Principles of MicroeconomicsChapter 14 Homework
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