The graph to the right represents the situation of Marguerite's Caps, a firm selling caps in the perfectly competitive cap industry. caps. (Enter your response as a whole number.) In order to maximize her profits, Marguerite should produce At the profit-maximizing level of output, she will earn a profit of $ (Enter your response as a whole number.) Suppose Marguerite decides to quit the cap industry and shut down. Her loss would be $ (Enter your response as a whole number.) 15.00 14.00- 13.00- 12.00- 11.00- & 10.00 MR 9.00- 8.00- 7.00- 6.00 5.00- 4.00 3.00 2.00- 1.00+ 0.00+ 0 20 MC Q ATC AVC 40 60 80 100 120 Quanity (caps per day) 140

The graph to the right represents the situation of Marguerite's Caps, a firm selling caps in the perfectly competitive cap industry. caps. (Enter your response as a whole number.) In order to maximize her profits, Marguerite should produce At the profit-maximizing level of output, she will earn a profit of $ (Enter your response as a whole number.) Suppose Marguerite decides to quit the cap industry and shut down. Her loss would be $ (Enter your response as a whole number.) 15.00 14.00- 13.00- 12.00- 11.00- & 10.00 MR 9.00- 8.00- 7.00- 6.00 5.00- 4.00 3.00 2.00- 1.00+ 0.00+ 0 20 MC Q ATC AVC 40 60 80 100 120 Quanity (caps per day) 140

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 11P

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