Please answer the questions correctly, and I don\'t understand where to put the
ID: 2496172 • Letter: P
Question
Please answer the questions correctly, and I don't understand where to put the blue rectangle! Help please!
4. Profit maximization in the cost-curve diagram Suppose 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. 100 90 80 70 Profit or Loss TC 60 a 50 30 20 10 AVC 0 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of microwaves) In the short run, at a market price of $35 per microwave, this firm will choose to pr duce 32,500 microwaves per day. 7,500 30,000 32,500 40,000 On the previous graph, use the blue rectangle (circle symbols) to shade the area represe the firm chooses to produce the quantity you already selected m's profit or loss if the market price is $35 and Note: In the following question, you should enter a positive number in the numeric entry The area of this rectangle indicates that the firm's would be $ er day.Explanation / Answer
Answer to blank 1: 32,500 (at this point MR = MC)
Answer to blank 2: Economic loss
Answer to blank 3: $1,300,000 ($40 * 32,500) $40 is the per unit loss, i.e. per unit cost is $75 and per unit revenue is $35.