Suppose that the market for frying pans is a competitive market. The following g

Question

Suppose 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. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. 100 90 Proft or Loss 80 TC 60 50 ?40t a 30 AVC 20 10 005 20 25 3 40 45 5 QUANTITY (Thousands of pans per day) In the short run, at a market price of $50 per pan, this firm will choose to produce pans per day On the preceding graph, use the blue rectangle (circle symbols) to shade the ares 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??would bel thousand per day in the short run.

Explanation / Answer

In short run firm produces MC=MR. In competitive market MR= Price. MR=50 hence firm produces ( anything between 36-37 please check the avilable options.).    Also provide the given options with question to qnswer the rest part of the question.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.