Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. The following graph plots daily cost curves for a firm operating in the competitive market for designer handbags.Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates.(?)PRICE (Dollars per bag)10090807060504030201000MC10ATCAVC20 304050607080QUANTITY (Thousands of bags per day)90 100Profit or Lossmant price anual to $45 ner han the firm should produce a daily quantity ofbaas. In the short run, given a market price equal to $45 per bag, the firm should produce a daily quantity ofbags.On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of$45 and the quantity of production from your previous answer.Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss.The rectangular area represents a short-runof $thousand per day for the firm.

In a perfect competition , The firm will produce where Price is equal to marginal cost. So, P = MC.…

In the short run, given a market price equal to $45 per bag, the firm should produce a daily quantity of bags. On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $45 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run thousand per day for the firm.

In the short run, given a market price equal to $45 per bag, the firm should produce a daily quantity of bags. On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $45 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run thousand per day for the firm.

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter9: Price Takers And The Competitive Process

Section: Chapter Questions

Problem 16CQ

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