# MR Cost Curve Example 5 10 15 20 25 30 5101520253035 0 MC ATC AFC AVC What is your level of production if your price is 25? PRICE QUANTITY.

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MR Cost Curve Example 5 10 15 20 25 30 5101520253035 0 MC ATC AFC AVC What is your level of production if your price is 25? PRICE QUANTITY

MR Cost Curve Example 5 10 15 20 25 30 5101520253035 0 MC ATC AFC AVC What is your level of production if your price is 25? REMEMBER: Profit Max occurs where MC=MR=P PRICE QUANTITY

MR What is TR? 5 10 15 20 25 30 5101520253035 0 MC ATC AFC AVC PRICE QUANTITY

MR TR= Grey Area 5 10 15 20 25 30 5101520253035 0 MC ATC AFC AVC Grey Area: TR= Price * Q PRICE QUANTITY

MR What is TC? 5 10 15 20 25 30 5101520253035 0 MC ATC AFC AVC PRICE QUANTITY

MR TC = Red Area 5 10 15 20 25 30 5101520253035 0 MC ATC AFC AVC Red area: TC = ATC x Q PRICE QUANTITY

MR 5 10 15 20 25 30 5101520253035 0 MC ATC AFC AVC What area shows Economic Profits? PRICE QUANTITY

MR 5 10 15 20 25 30 5101520253035 0 MC ATC AFC AVC Economic Profits = Green Area Green Area Economic Profits = TR - TC PRICE QUANTITY

MR 5 10 15 20 25 30 5101520253035 0 MC ATC AFC AVC What is the Breakeven Price and Quantity? PRICE QUANTITY

MR 5 10 15 20 25 30 5101520253035 0 MC ATC AFC AVC Breakeven Price and Quantity = Pink Lines Its the price that just covers total costs TR = TC implies economic profits are zero Minimum ATC PRICE QUANTITY

MR 5 10 15 20 25 30 5101520253035 0 MC ATC AFC AVC What is the Shutdown Price and Quantity? PRICE QUANTITY

MR 5 10 15 20 25 30 5101520253035 0 MC ATC AFC AVC Shutdown Price and Quantity = Turquoise Lines Its the price that just covers total variable costs Minimum AVC PRICE QUANTITY

MR 5 10 15 20 25 30 5101520253035 0 MC ATC AFC AVC What is the Supply Curve? PRICE QUANTITY

MR 5 10 15 20 25 30 5101520253035 0 MC ATC AFC AVC Supply Curve = Lime Green Line MC curve above the AVC PRICE QUANTITY

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