Suppose Eric runs a small business that manufactures frying pans. Assume that the market for frying pans is a competitive market, and the market price is $20 per frying pan. The following graph shows Eric's total cost curve. On the graph below, use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first seven Frying pans that Eric produces, including zero frying pans. 200 175 150 125 100 0 75 50 25 25 0 ☐ ■ Total Cost 0 Total Revenue Profit

Suppose Eric runs a small business that manufactures frying pans. Assume that the market for frying pans is a competitive market, and the market price is $20 per frying pan. The following graph shows Eric's total cost curve. On the graph below, use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first seven Frying pans that Eric produces, including zero frying pans. 200 175 150 125 100 0 75 50 25 25 0 ☐ ■ Total Cost 0 Total Revenue Profit

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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