a. Thecharged is determined by the marketequilibrium. For a perfectly competitive firm, it isdepicted as a horizontal line on the firm level graph, andalso equals demand and marginal revenue (D=MR).minimum ATCprofit-maximizing outputlossesprofitsATC at profit-maximizing outputpricec. Theis one of the pieces of information neededto calculate profits/losses for the firm. It can be foundonce quantity produced is chosen by a firm. Graphically,it is the point on the average total cost curve once thischoice is made. It also helps determine two vertices ofthe profit/loss rectangle.minimum ATCATC at the profit-maximizing outputprofitpriceprofit-maximizing outputquantity at minimum ATCb. Thechosen by a firm will be determined by theintersection of the firm-level demand curve and themarginal cost curve (which is their firm level supplycurve).minimum ATClossespriceATC at the profit-maximizing outputprofitsprofit-maximizing outputd. can be calculated as (P - ATC) . Q. It canbe represented graphically as a rectangle, where Q andthe vertical axis establish the long sides and P-ATCestablishes the short sides. If ATC at the profit-maximizing quantity is greater than price, this is whatyou call the calculation.The quantity at minimum ATCProfit-maximizing outputPriceProfitsMinimum ATCLosses

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1. The charged is determined by the market quilibrium. For a perfectly competitive firm, it is lepicted as a horizontal line on the firm level graph, and Iso equals demand and marginal revenue (D=MR). minimum ATC profit-maximizing output losses profits ATC at profit-maximizing output price . The is one of the pieces of information needed calculate profits/losses for the firm. It can be found once quantity produced is chosen by a firm. Graphically, is the point on the average total cost curve once this hoice is made. It also helps determine two vertices of he profit/loss rectangle. O minimum ATC ATC at the profit-maximizing output profit price O profit-maximizing output b. The chosen by a firm will be determined by the intersection of the firm-level demand curve and the marginal cost curve (which is their firm level supply curve). minimum ATC losses price ATC at the profit-maximizing output profits profit-maximizing output d. can be calculated as (P - ATC). Q. It can be represented graphically as a rectangle, where Q and the vertical axis establish the long sides and P-ATC establishes the short sides. If ATC at the profit- maximizing quantity is greater than price, this is what you call the calculation. The quantity at minimum ATC Profit-maximizing output Price Profits Minimum ATC

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 41P: A computer company produces affordable, easy-to-use home computer systems and has fixed costs of...