1. Profit maximization of a seller in a competitive price-searcher market Consider De Virtuoso Cupcake, a cupcake shop in a competitive price-searcher market. The following graph shows its demand curve (Demand), marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC). Assume that the shop is operating in the short run. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity. If the shop is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. If the shop is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. 4.00 3.50 Monopoly Outcome 3.0 2.50 Profit PRICE (Dollars per cupcake) 2.00 1.50 Loss ATO 1.00 0.50 MC MR Demand 0 0.5 10 15 2.0 25 30 3.5 4.0 QUANTITY (Thousands of cupcakes) At the profit-maximizing output and price, the shop's profit is equal to $ (Hint: Be sure to enter a minus sign if profit is negative.) Given the profit-maximizing choice of output and price, there are shops in the industry than there would be in long-run equilibrium