In the short run, at a market price of $45 per purse, this firm will choose to produce purses per day.

On the preceding graph, use the blue rectangle (circle symbols) to shade the area representing the firm’s profit or loss if the market price is $45 and the firm chooses to produce the quantity you already selected.

Note: In the following question, enter a positive number, even if it represents a loss.

In the short run, at a market price of $45 per purse, this firm will choose to produce (10,000/30,000/40,000/45,000) purses per day.

The area of this rectangle indicates that the firm’s (loss/profit) would be ____ thousand per day in the short run.

Transcribed Image Text:

100 90 Profit or Loss 80 70 60 50 40 АТС 30 20 AVC MC 10 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of purses per day) PRICE (Dollars per purse) 100 90 Profit or Loss 80 70 60 50 40 АТС 30 20 AVC MC 10 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of purses per day) PRICE (Dollars per purse)

Answer rating: 100% (QA)

In the short run this firm will choos... View the full answer