4. Profit maximization in the cost-curve diagramSuppose that the market for candles is a competitive market.The following graph shows the daily cost curves of a firmoperating in this market. (Note: Area in blue rectangle isshown in thousands.)3228V24ATCAVCMCPRICE (Dollars per candle)40368400+248610QUANTITY (Thousands of candles)12 14 16 18. 206,000In the short run, at a market price of $20 per candle, this firmwill choose to producecandles per day.8,000Profit or Loss (in thousands)?On the previous graph,9,000the blue rectangle (circle symbols)to shade the area (in the 12000 ands) representing the firm's profitor loss if the market price is $20 and the firm chooses toproduce the quantity you already selected.Note: In the following question, you should enter a positivenumber in the numeric entry field.[$The area (in thousands) of this rectangle indicates that thefirm'swould beper day.

A perfectly competitive firm comprises many buyers and sellers wherein each seller sells identical…

4. Profit maximization in the cost-curve diagram Suppose that the market for candles is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. (Note: Area in blue rectangle is shown in thousands.) 28 V 24 ATC AVC MC PRICE (Dollars per candle) 40 36 32 8 4 0 0 + 2 4 6 10 12 14 16. QUANTITY (Thousands of candles) 8 18 20 6,000 Profit or Loss (in thousands) In the short run, at a market price of $20 per candle, this firm will choose to produce candles per day. 8,000 ? On the previous graph, 9,000 the blue rectangle (circle symbols) to shade the area (in th 12000 ands) representing the firm's profit or loss if the market price is $20 and the firm chooses to produce the quantity you already selected. Note: In the following question, you should enter a positive number in the numeric entry field. The area (in thousands) of this rectangle indicates that the firm's would be per day.

4. Profit maximization in the cost-curve diagram Suppose that the market for candles is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. (Note: Area in blue rectangle is shown in thousands.) 28 V 24 ATC AVC MC PRICE (Dollars per candle) 40 36 32 8 4 0 0 + 2 4 6 10 12 14 16. QUANTITY (Thousands of candles) 8 18 20 6,000 Profit or Loss (in thousands) In the short run, at a market price of $20 per candle, this firm will choose to produce candles per day. 8,000 ? On the previous graph, 9,000 the blue rectangle (circle symbols) to shade the area (in th 12000 ands) representing the firm's profit or loss if the market price is $20 and the firm chooses to produce the quantity you already selected. Note: In the following question, you should enter a positive number in the numeric entry field. The area (in thousands) of this rectangle indicates that the firm's would be per day.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.1P

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