SMC 56 48 40 ATC AVC 32 24 16 - Q 2400 4800 7200 9600 The graph shows the short-run cost curves for a firm in a perfectly competitive market. If market price is $48: - profit-maximizing level of output is - Total Cost is $ - Total Fixed Cost is $ - the firm's profit is $ If market price is $16: - the firm's profit is $$ SMC 520 ATC AVC 295 270 145 120 95 q 0 1300 1900 2500 The figure above shows cost curves for a perfectly competitive firm. Suppose that market price is $520. A firm producing 2 150 units of output should produce units of output instead, to earn profits of $ A profit-maximizing firm will break even when market price is $ If market price is $120, a profit-maximizing firm will produce units of output and earn profits of $