Question 2: Consider the following graph which shows the situation facing "Famous Footwear", a producer of female shoes.

1. What quantity does Famous Footwear produce?

Answer:

1. What is the price of a pair of Famous Footwear shoes?

Answer:

1. How much is the Famous Footwear's economic profit or economic loss?

Answer:

1. If price is $60, how much will be the profit or loss?

Answer:

1. Why MR curve is below D curve?

Answer:

100 MC ATC 80 Price and cost (dollars per pair] 60 40 20 D MR 0 50 100 150 200 Quantity (pairs of running shoes per week)