Draw the firm's demand curve. Label it D. Draw the firm's marginal revenue curve. Label it MR. Draw the firm's marginal cost curve. Label it MC. Draw a point at the profit-maximizing price and output. Wilbur's economic profit is $ a day.

Draw the firm's demand curve. Label it D. Draw the firm's marginal revenue curve. Label it MR. Draw the firm's marginal cost curve. Label it MC. Draw a point at the profit-maximizing price and output. Wilbur's economic profit is $ a day.

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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Question

Wilbur's is the only septic service in a remote village. The firm's total fixed cost is $150 a day and marginal cost is
zero. The table gives the demand schedule for service calls.
Price
(dollars per service call)
500
400
300
200
100
0
Draw the firm's demand curve. Label it D.
Draw the firm's marginal revenue curve. Label it MR.
Quantity
(service calls per day)
0
2
4
6
8
10
Draw the firm's marginal cost curve. Label it MC.
Draw a point at the profit-maximizing price and output.
Wilbur's economic profit is $ a day.
>>> If the firm incurs an economic loss, indicate the loss with a minus sign. If the firm earns an economic profit, do
not include a plus sign.
600
500-
400-
300-
200-
100-
04
Price and cost (dollars per service call)
4
10
Quantity (service calls per day)
>>> Draw only the objects specified in the question
0
12

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Wilbur's is the only septic service in a remote village. The firm's total fixed cost is $125 a day and its marginal cost is zero. The table gives the demand schedule for service calls. Price (dollars per service call) 500 400 300 200 100 0 Quantity (service calls per day) 0 4 8 12 16 20 Draw the firm's demand curve. Label it D. Draw the firm's marginal revenue curve. Label it MR. Draw the firm's marginal cost curve. Label it MC. Draw a point at the profit-maximizing price and output. What is Wilbur's economic profit? Wilbur's economic profit is $ a day. >>> If the firm incurs an economic loss, indicate the loss with a minus sign. If the firm makes an economic profit, do not include a plus sign. C 600- 500- 400- 300- 200- 100- 0- Price and cost (dollars per service call) 20 8 12 16 Quantity (service calls per day) >>> Draw only the objects specified in the question 24 ( [
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