Question: The following graph represents the situation of Marguerite's Caps, a firm selling caps in the perfectly competitive cap industry: a. How much output should Marguerite

The following graph represents the situation of Marguerite's Caps, a firm selling caps in the perfectly competitive cap industry:

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?

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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