The graph to the right shows a firm in a perfectly competitive market making a profit. The
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Question:
The graph to the right shows a firm in a perfectly competitive market making a profit. The graph includes the firm's marginal cost curve, average total cost curve, and average variable cost curve.
Assume the market price is $32.
1.) Use the line drawing tool to graph the firm's demand curve. Label this line 'Demand'.
2.) Use the point drawing tool to plot the firm's profit-maximizing price and quantity. Label this point 'Point A'.
3.) Use the rectangle drawing tool to shade in the firm's profit (Profit/Loss). Properly label this shaded area.
Carefully follow the instructions above, and only draw the required objects.
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
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