The following graph represents the situation of Marguerite's Caps, a firm selling caps in the perfectly competitive
Question:
a. How much output should Marguerite produce to maximize her profits?
b. How much profit will she earn?
c. Suppose Marguerite decides to shut down. What would her loss be?
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Price and cost (dollars per cap) MC ATC AVC $11.00 MR 9.00 6.00 Quantity (caps per day) 80 100
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