The figure below shows the situation facing Smart Digit, Inc, a firm in monopolistic competition that produces calculators. What is the firm's economic profit per day? 20 16 MC ATC 12 MR 100 200 300 400 500 600 Quantity (calculators per day) 00 4. Price and costs (dollars per calculator)

Marginal Cost Price Customers Total Marginal Total Cost ATC (000) Revenue Revenue ($000) ($000) ($000) ($000) ($000) $200 10 $1800 190 20 3200 180 30 4300 170 40 5350 160 50 6450 150 60 7750 140 70 9350 1. Draw a graph showing D, MR, ATC, MC, and P. Shade in the area of profit.

Hannah has a small business making clothing alterations. Which of the following products would dramatically affect her profit margins if the price were to decrease for that product? A. dresses B. thread C. sewing machines

Price (dollars ticket) 20 Quantity Total cost (dollars per Big Top is the only circus in the nation. The table sets out the demand schedule for circus tickets and the cost schedule for producing the circus. (tickets per show) show) 0 1,000 a. 18 100 1,600 Calculate Big Top's profit-maximizing price, output, and economic profit if it charges a single price for all tickets. 16 200 2,200 14 300 2,800 12 400 3,400 10 500 4,000 8 600 4,600 6 700 5,200 Big Top's total revenue and marginal revenue schedules are in the second table (see above table), which is useful to answer these questions. Big Top's marginal cost is constant and equal to $6 per ticket. Big Top's marginal revenue equals its marginal cost when the quantity of tickets is 350 tickets per show and the price is $13 per ticket. The total revenue is 350 tickets x $13, which is $4,550. The total cost of 350 tickets is $3,100. So the economic profit equals $4,550 - $3,100, which is $1, 450. You are constructing a table with total…