Question : 51) To maximize profit, a firm will produce the level : 1245266

51) To maximize profit, a firm will produce the level of output where MR = MC. If a firm actually makes a profit depends on the relationship of price to average total cost. What are the three possible relationships between price and average total cost that determine if a firm will make a profit, experience a loss, or break even?

If P < ATC, the firm experiences a loss. If P = ATC, the firm breaks even.   52) Suppose Veronica sells teapots in the perfectly competitive teapot market. Her output per day and her costs are as follows:   Output per Day Total Cost           0         $20           1           32           2           37           3           48           4           61           5           75           6           92           7         113           8         136   Suppose the current equilibrium price in the teapot market is $10. To maximize profit, how many teapots will Veronica produce, what price will she charge, and how much profit (or loss) will she make? Draw a graph to illustrate your answer. Your graph should include Veronica's demand, ATC, AVC, MC, and MR curves, the price she is charging, the quantity she is producing, and the area representing her profit (or loss).     53) Suppose Veronica sells teapots in the perfectly competitive teapot market. Her output per day and her costs are as follows:   Output per Day Total Cost           0         $20           1           32           2           37           3           48           4           61           5           75           6           92           7         113           8         136   Suppose the current equilibrium price in the teapot market is $20. To maximize profit, how many teapots will Veronica produce, what price will she charge, and how much profit (or loss) will she make? Draw a graph to illustrate your answer. Your graph should include Veronica's demand, ATC, AVC, MC, and MR curves, the price she is charging, the quantity she is producing, and the area representing her profit (or loss).     54) Suppose Veronica sells teapots in the perfectly competitive teapot market. Her output per day and her costs are as follows:   Output per Day Total Cost           0         $20           1           32           2           37           3           48           4           61           5           75           6           92           7         113           8         136   Suppose the current equilibrium price in the teapot market is $15. To maximize profit, how many teapots will Veronica produce, what price will she charge, and how much profit (or loss) will she make? Draw a graph to illustrate your answer. Your graph should include Veronica's demand, ATC, AVC, MC, and MR curves, the price she is charging, the quantity she is producing, and the area representing her profit (or loss).