Could someone please draw out this exact graph and label it precisely with what is provided (SOLID and DOTTED lines, red and black lines and text) and answer the 3 areas (Revenue, Cost, Profit) in terms of P1,Q1,P2,Q2 and indicate the condition and mark the break even and shut down points using arrows so that I can write it down and study it? :)
AutoSave ON ~ 3 6 . 5 5 7 w StrebelHW4 - Saving... Q Q v E coursehero.com Home Insert Draw Design Layout References Mailings > > Share Comments Course Hero Untitled question your answer Garamond v 10 Your question: Subject: Microeconomics Course: Add Paste BI Uvab X2 X A v D Av Paragraph Styles Dictate Sensitivity I did all my calculations correctly but I am so stuck on how to even graph any of this :( 5 . On the graph below show the firm's profit maximizing output rate of 128 units plus the areas of total costs, total Get 24/7 homework help from Expert Tutors revenues and profits given the ongoing market price of P1 = $54 per unit. In addition, indicate the condition, in which firm will be losing money and the situation that will force it to shut down. Finally mark the break-even and shut-down points. Please use the lines, text boxes and arrows created on or below the graph to answer this question. (8 points) Answer from your tutor: Report this answer Total Revenue area: MC ATC Total Cost area: aroramandeep65 Answered 14 minutes ago Profit area: AVC Shutdown point is the one where the price falls so low that the firm is unable to cover even the variable cost. Firms make loses when the price is below ATC but it continues its operations as long as it is able to cover the variable costs i.e AVC Explanation: Since there is nothing given regarding the long run or short run, I am assuming the market is in the short run and the given price P1 = $54 is greater than minimum ATC so that the firm is able to make some economic profits UC ATC AVC P= SULA - P -MR= D - AFC Q*=128 AFC P1 D Quantity P = MR Q2 Total Revenue Area : as ( AOEB) PM QBE QSp DML PML = MR ML Total Cost Area : an. (DOE C ) P SD DSD Profit Area : as ( ABCD ) [ shaded MR SD Losses : At any price between P2 and P3 (as indicated in the graph), the firm will be losing money since price is below ATC. Shutdown point : As the price falls below P3, the firm has no option but to shutdown since it is not able to even cover the variable cost. StrebelHW4.docx Point F denotes the break even point whereas point G denotes the shutdown point. PS : Sorry but I didn't get the notations and lines given below clearly so couldn't use all of them. Is this answer helpful? Ask another question while you X Your feedback will help us match you with the Ask a Savarna Strebel best tutor Helpfu Unhelpful A+ Ask Expert Tutors ECO-120-40 You can ask 22 questions (will Page 3 of 5 xpire () 1020 words Focus + 90%
