Question: Isabella grows pumpkins. Her average variable cost ( AVC ) , average total cost ( ATC ) , and marginal cost ( MC ) of
Isabella grows pumpkins. Her average variable cost AVC average total cost ATC and marginal cost MC of production are illustrated in the figure to the right.
Assume the market for pumpkins is perfectly competitive and that the market price is $ per box
If Isabella produces the profitmaximizing quantity of pumpkins, what will be her profits?
Isabella will earn a profit of thousand. Enter your response rounded to two decimal places.
What will Isabella's profit be if she shuts down in the short run and produces nothing?
Isabella's profit will be $ thousand. Enter your response rounded to two decimal places.
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