Suppose that the market for air fresheners is a competitive market. The following graph shows the daillur 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. 3. M Prot 0|" L055 24 PRICE (Dollars per airfreshener) B ATC 1s 12 s A'U'C 4 o o 2 4 a s 10 12 14 1s 1s 20 OUail-lTITH'r (Thousands of air fresheners per day} In the short run, at a market price of $20 per air freshener, this rm will choose to produce v air fresheners per clay. On the preceding graph, use the blue rectangle (circle symbols) to shade the area repnesen m's prot or loss If the manket price is $20 and the rm 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 rm's V would be thousand per I . Suppose that the market for air fresheners is a competitive market. The following graph shows the dalh-r 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. (2) 4o Prot or Loss 32 E M .3. ATC 5; PRICE (Dollars per airfreshener) o B AVG m 4 o o 2 4 e- s 10 12 14 16 13 20 QUANTITY (Thousands ofairfresheners per day} In the short runr at a market price of $20 per air freshener, this rm will choose to produce V air fresheners per clay. On the preceding graph, use the blue rectangle (circle symbols) to shade the area representing the rm's prot or loss if the market price is $20 and the rm chooses to produce the quantity you afr ted. Note: In the following question, enter a positive n Men if it represents a loss. The area of this rectangle indicates that the rm's V would be thousand per clayr in the short run. Suppose that the market for polos is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. (? 50 15 40 35 30 ATC 25 PRICE (Dollars per polo) 20 15 10 AVC MC 2 6 8 10 12 14 16 18 20 QUANTITY (Thousands of polos) For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the graph to identify its total variable cost. Assume that if the firm is indifferent between producing and shutting down, it will produce. (Hint: You can select the purple points [diamond symbols] on the graph to see precise information on average variable cost.)PRICE (Dollar 3 15 1 0 AVE 0 z 4 a s 10 12 14 1s 1s 20 QUANTITY (Thousands of polos} 2,000 4,500 1500 10,000 For each price in the folio -, calculate the firm '5 optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data ' 12,000 aph to identify its totai I.rariahie cost. Assume that if the firm is indifferent between producing and shutting down, it will produce. (Hint: Yo t the purpie points { diamond symbois} on the graph to see precise information on average variable cost.) 16,000 Price Total Revenue Fixed Cost Variable Cost Profit (Dollars per polo) (Dollars) (Dollars) (Dollars) (Dollars) If the rm shuts down, it must incur its xed costs (FL?) in the short run. In this caser the firm's xed cost is $135,000 per day. In other words, if it shuts down, the rm would suffer losses of $135,000 per day until its fixed costs end {such as the expiration of a building lease}. This rm's shutdown pricethat isr the price below I.uhich it is optimal for the firm to shut downis V per polo. PRICE (Dollar 8 15 I 0 AUG 0 z 4 e- s 10 12 14 16 13 20 QUANTITY (Thousands of polos} For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the graph to identii'y its total I.rariahle cost. Assume that if the hon is indifferent between producing and shutting down, it will produce. (Hint: You can select the purple points { diamond symbols} on the graph to see precise information on average variable cost.) Price Quantity Total Revenue Fixed Cost Variable Cost Profit { Dollars per polo) (Poles) (Dollars) (Dollars) (Dollars) (Dollars) _. E E I If the rm shuts down, it must incur its xed costs (FC) in the short run. In this case, the firm's xed $27.50 5,000 per day. In other words, if it shuts down, the rm would suffer losses of $135,000 per day until its fixed costs end {such as the ex: 3 building lease). This rm's shutdown pricethat isr the price heloln.I which it is optimal for the firm to shut downis I V per polo