Economics Homework Help. Diablo Valley College Graphing Perfect Competition Table Analysis
Quantity TC ATC AVC MC TR AR MR Profit/unit Total profit
0 10
1 15
2 18
3 20
4 21
5 23
6 26
7 30
8 35
9 41
10 48
11 56
-1- plot the ATC, AVC and AFC curves on graph paper. You should spread the information for the costs, which you will have plotted on the vertical axis, such that it will fill the whole page. This should be a large graph because you will be adding the different prices to plot the individual demand curve. (Make 3 copies to add the information for different prices, below.)
-2- to that graph add the demand at price $5 (it will be a horizontal line since this is pure competition)
-3- shade the area of economic profit
– 4- on a separate graph of the cost curves – use the second copy of the cost information- add a demand curve at a price of $4
-5 – shade the area of loss or profit
-6- If you were to close down at price $4, shade the area of the loss
– 7 – on copy 3 of the graph curves, plot the demand curve at price $2.60 – now you see why the graph needs to be very accurate and as large as possible on your graph page
-8- shade the area of loss at price $2.60.
– 9 – if you were to close down at price $2.60 shade the loss area?
