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. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point. Profit or Loss 35 ATC PRICE Dolars per sweater) 20 20 15 10 AVC MC 5 0 20 2 10 H 16 10 QUANTITY (Thousands of sweaters per day) In the short run, at a market price of $15 per sweater, this firm will choose to produce sweaters per day On the preceding graph, use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss of the market price is $15 and the firm chooses to produce the quantity you already selected Note: In the following question, enter a positive number, even if it represents a loss. The area of this rectangle indicates that the firm's would be s thousand per day in the short run. Grade It Now