4. Profit maximization in the cost-curve diagramSuppose that the market for blenders 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.1009080Profit or Loss70АТС30AVC20MC10101520253035404550QUANTITY (Thousands of blenders per day)blenders per day.In the short run, at a market price of $50 per blender, this firm will choose to producePRICE (Dollars per blender) Homework (Ch 14)1009080Profit or Loss70АТСAVC20MC10101520253035404550QUANTITY (Thousands of blenders per day)In the short run, at a market price of $50 per blender, this firm will choose to produceblenders per day.On the preceding graph, use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss if the market price is $50 andthe firm chooses to produce the quantity you already selected.Note: In the following question, enter a positive number, even if it represents a loss.would be $thousand per day in the short run.The area of this rectangle indicates that the firm'sPRICE (Dollars per blender)

A perfectly competitive firm is price taker as there are large number of firms selling identical…

4. Profit maximization in the cost-curve diagram Suppose that the market for blenders 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 Profit or Loss 80 70 АТС 30 AVC 20 MC 10 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of blenders per day) blenders per day. In the short run, at a market price of $50 per blender, this firm will choose to produce PRICE (Dollars per blender)