Worksheet 60.1: Profit-Maximization and Loss-Minimization Practice ATC MC MC P ATC Pb Pa Qa Qb Firm A Firm B These figures represent cost curves and market price for Firm A and Firm B in a purely competitive market. 1. Explain how to determine the profit maximizing level of output for the firms shown here. Saunaup brin boing johan 2. Amend the graph to show the economic profit or loss for Firm A. Shade in the area of profit or loss. 3. What will happen in the market in the long run when the profit or loss shown in Firm A's graph is known? 4. What other information would you need to have in Firm B's graph to know if they will continue to produce