<The graph on the right shows the marginal revenue, marginal cost, and averagetotal cost curves for a firm in a perfectly competitive market.If this firm produced at the profit-maximizing output level, what would be the size ofthis firm's profits or losses?1.) Using the rectangle drawing tool, illustrate the size of this firm's profits or lossesif it produces at the profit-maximizing output level. Label the area appropriately.Carefully follow the instructions above and only draw the required object.CETTEPriceQuantityMarginalCostAverageTotal CostMRQ ←If some sellers exit a competitive market, how will this affect its equilibrium?1.) Using the 3-point drawing tool, show the impact if some sellers exit a competitivemarket. Label your new curve appropriately.2.) Using the point drawing tool, show the new equilibrium price and quantity. Labelthis point 'A'.Carefully follow the instructions above and only draw the required objects.SCIEEPrice1098-7-6-266QuantityS₁C

Note: Due to guidelines, I can answer only the first question. Perfect competition is a type of…

The graph on the right shows the marginal revenue, marginal cost, and average total cost curves for a firm in a perfectly competitive market. If this firm produced at the profit-maximizing output level, what would be the size of this firm's profits or losses? 1.) Using the rectangle drawing tool, illustrate the size of this firm's profits or losses if it produces at the profit-maximizing output level. Label the area appropriately. Carefully follow the instructions above and only draw the required object. Quantity Marginal Cost Average Total Cost MR

The graph on the right shows the marginal revenue, marginal cost, and average total cost curves for a firm in a perfectly competitive market. If this firm produced at the profit-maximizing output level, what would be the size of this firm's profits or losses? 1.) Using the rectangle drawing tool, illustrate the size of this firm's profits or losses if it produces at the profit-maximizing output level. Label the area appropriately. Carefully follow the instructions above and only draw the required object. Quantity Marginal Cost Average Total Cost MR

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

Chapter10: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 15CQ

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