For each price in the following table, use the graph to determine the number of lamps this firm would produce in order to maximize its economic profit. Assume that when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero units and the profit-maximizing quantity. Also, indicate for each price whether the firm will produce, shut down, or be indifferent between the two in the short run, and whether it will make a profit, suffer a loss, or break even.

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100 90 80 70 60 50 40 30 20 10 D 0 1 MC ATC AVC 2 3 4 5 6 7 8 9 10 QUANTITY OF OUTPUT (1,000s of lamps) 100 90 80 70 60 50 40 30 20 10 D 0 1 MC ATC AVC 2 3 4 5 6 7 8 9 10 QUANTITY OF OUTPUT (1,000s of lamps)

Answer rating: 100% (QA)

Mc curve is the supply curve Thus the quantity of supply will increase as p... View the full answer