4. Demand for a Competitive Price-Taking Firm (Figure 11.2) 11- Quantity Price (dollars) Quantity Price (dollars) Panel A – Market Panel B – Demand curve facing a price-taker 0 0 D S P 0 Q 0 P 0 D = MR
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8. Profit Maximization: P = $36 (Figure 11.3) 11- Total cost = $19 x 600 = $11,400 Total revenue =$36 x 600 = $21,600 Profit = $21,600 - $11,400 = $10,200
9. Short-Run Loss Minimization: P = $10.50 (Figure 11.5) 11- Total revenue = $10.50 x 300 = $3,150 Profit = $3,150 - $5,100 = -$1,950 Total cost = $17 x 300 = $5,100