Question

4. Profit maximization in the cost-curve diagram

Suppose that the market for black sweaters is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. 

In the short run, at a market price of $15 per sweater, this firm will choose to produce ________ sweaters per day. 

On the previous graph, use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss if the market price is $15 and the firm chooses to produce the quantity you already selected. 

Note: In the following question, you should enter a positive number in the numeric entry field. 

The area of this rectangle indicates that the firm?s _________ would be $________ per day.

Answer 1