4. Profit maximization In the cost-curve diagram The following graph plots daily cost curves for a firm operating in the competitive market for designer handbags. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. 100 8 8 90 Profit or Loss 08 70 60 50 PRICE (Dollars per bag) 40 TC 30 20 MC AVC MODO hpCENGAGE | MINDTAP Homework (Ch 14) n E 100 90 80 Profit or Loss 70 EI 60 50 PRICE (Dollars per bag) 40 30 20 MC AVC 10 20 30 40 50 60 70 90 100 QUANTITY (Thousands of bags per day) ? MODO hHomework (Ch 14) 30 20 MC AVC 10 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of bags per day) In the short run, given a market price equal to $45 per bag, the firm should produce a daily quantity of bags 10,000 On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit o e firm given the market price of 30,000 $45 and the quantity of production from your previous answer. 40,000 Note: In the following question, enter a positive number regardless of whether the firm earns a profit or OSS. 45,000 The rectangular area represents a short-run of $ thousand per day for the firm. Grade It Now Save & Continue Continue without saving O E MODO hp