The following attached graph represents the situation of Sindbads caps, a firm selling caps in the perfectly competitive caps industry.

1. How much output should Sindbad produce to maximize his profit, if the market price is equal to $11?
2. How much profit (loss) will he earn? Indicate the profit (loss) area on the graph.
3. Suppose Sindbad decides to shut down. What would his loss be?

MC Price and cost dollars per capi AVO 51100 MA 9.00 s. 6.00 60 SO 100 Quantity feaps por day) 1) How much output should Sindbad produce to maximize his profit, if the market price is equal to $11? 2) How much profit (loss) will he earn? Indicate the profit (loss) area on the graph. 3) Suppose Sindbad decides to shut down. What would his loss be