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00 MC ATC AVC E 22 MR=D=AR=P M DER 17/D 16 L A:09 I B 100 A K 8 G F HJ 23 30 32

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00 MC ATC AVC E 22 MR=D=AR=P M DER 17/D 16 L A:09 I B 100 A K 8 G F HJ 23 30 32 The graph to the right shows the cost and revenue curves for Poca-Madre, a Mexican restaurant in Washington, D.C. Use the graph to answer the following questions about the firm's optimal (profit-maximizing) operations. (a) What is the optimal price (P") that the firm charges? p' = $ per unit (b) What is the optimal amount of bread (Q) that the firm produces? Q* = units (c) What is the firm's corresponding average total cost (ATC) per unit produced? ATC = $ per unit (d) Using the letters that label specific points on the graph, what are the 4 corners of the rectangle of which the area represents the firm's total revenue (TR)? (That is, if it were the rectangle with comers at points 0. A, G, and F, then you would enter OAGF in the answer space. The letters can be written in any order, but they must be CAPITAL LETTERS and you can NOT use spaces. Note that the origin is represented by the letter "0") TR = (e) What is the resulting total revenue (TR) that the firm brings in? TR = $ ( Using the letters that label specific points on the graph, what are the 4 corners of the rectangle of which the area represents the firm's total costs (TC)? TC = (g) What is the firm's corresponding total cost (TC) of production? TC = $ (h) Using the letters that label specific points on the graph, what are the 4 corners of the rectangle of which the area represents the firm's profit (TL)? TT = 1) What is the firm's resulting profit (n)? TT $

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