Figure 14 6 Suppose a firm operating in a competitive market

Last updated: 3/25/2023

Figure 14 6 Suppose a firm operating in a competitive market has the following cost curves PS P4 P3 31 Price Q1 Q2 Q3 Q4 is zero can be represented by the area P3 x Q3 can be represented by the area P3 P2 Q3 MC Refer to Figure 14 6 When market price is P3 a profit maximizing firm s profit can be represented by the area P3 x Q2 ATC AVC Quantity