At a market price of $21 a toy, what quantity does the firm produce in the short run and does the firm make a positive economic profit, a zero economic profit, or an economic loss?

Figure 15.5 shows the short-run cost curves of a toy producer. The market has 1,000 identical producers and the table shows the market demand schedule for toys.

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FIGURE 15.5 Chapter Checkpoint Assignable Problems 5 to 7 Price and cost (dollars per toy) 24 21 18 15 12 0 500 MC ATC AVC 1,000 1,500 2,000 2,500 BILDE Output (toys per week)