Answer to Question #76710 in Economics for kendall

Question

In the short run, at a market price of $80 per sweater, this firm will choose to produce10,000 sweaters per day.

On the preceding graph, use the blue rectangle (circle symbols) to shade the area representing the firm’s profit or loss if the market price is $80 and the firm 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 firm’s would beper day.

Answer 1

If in the short run, at a market price of $80 per sweater, the firm will choose to produce 10,000 sweaters per day, then we need to know average total cost at this price to know if this firm earns profit or faces losses.