The following graph shows the average and marginal cost curves for Kandi Keynes, a perfectly competitive firm. ATC AVC 250 MC Tools 225 200 MR1 MR2 175 150 MR3 125 100 75 50 25 369 12 15 18 21 24 27 30 33 36 39 42 Output per period a. If the price is $150, draw in the marginal revenue curve, and label it MR1. Plot only the end points on the graph above. b. At this price, what are the break-even output(s), the profit-maximizing output, and the level of total profits at that output? Break-even output(s): and 30 profit-maximizing output: |for a total profit of $ Price/costs

The following graph shows the average and marginal cost curves for Kandi Keynes, a perfectly competitive firm. ATC AVC 250 MC Tools 225 200 MR1 MR2 175 150 MR3 125 100 75 50 25 369 12 15 18 21 24 27 30 33 36 39 42 Output per period a. If the price is $150, draw in the marginal revenue curve, and label it MR1. Plot only the end points on the graph above. b. At this price, what are the break-even output(s), the profit-maximizing output, and the level of total profits at that output? Break-even output(s): and 30 profit-maximizing output: |for a total profit of $ Price/costs

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 3P

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