PRICE (Dollars per cupcake) 4.00 3.50 1.00 2.50 2.00 1.50 1.00 0.50 0 MC D ATC MR 05 10 15 20 25 30 QUANTITY (Thousands of cupcakes) Demand 35 40 At the profit-maximizing output and price, the shop's profit is equal to Given the profit-maximizing choice of output and price, there are Profit Maximizing Outcome Profit Loss . (Hint: Be sure to enter a minus sign if profit is negative.) shops in the industry than there would be in long-run equilibrium.

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Firms In Competitive Markets
Section: Chapter Questions
Problem 7PA
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PRICE (Dollars per cupcake)
4.00
3.50
1.00
2.50
2.00
1.50
1.00
0.50
0
MC
D
ATC
MR
Demand
0.5 1.0 1.5 20 25 30 35 40
QUANTITY (Thousands of cupcakes)
At the profit-maximizing output and price, the shop's profit is equal to
Given the profit-maximizing choice of output and price, there are
Profit Maximizing Outcome
Profit
Loss
2
(Hint: Be sure to enter a minus sign if profit is negative.)
shops in the industry than there would be in long-run equilibrium.
Transcribed Image Text:PRICE (Dollars per cupcake) 4.00 3.50 1.00 2.50 2.00 1.50 1.00 0.50 0 MC D ATC MR Demand 0.5 1.0 1.5 20 25 30 35 40 QUANTITY (Thousands of cupcakes) At the profit-maximizing output and price, the shop's profit is equal to Given the profit-maximizing choice of output and price, there are Profit Maximizing Outcome Profit Loss 2 (Hint: Be sure to enter a minus sign if profit is negative.) shops in the industry than there would be in long-run equilibrium.
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