Suppose that the market for sports watches is a competitive market. The following graph shows the daily cost curves of a firm operating in this market
In the short run, at a market price of $80 per watch, this firm will choose to produce 10000/30000/40000/55000watches per day.
On the previous 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, you should enter a positive number in the numeric entry field.
The area of this rectangle indicates that the firm’s profit /economic loss would be $ per day.
