(Solved): The following graph plots daily cost curves for a firm operating in the competitive market for pres ...

The following graph plots daily cost curves for a firm operating in the competitive market for pressure cookers. Using the following table, for each price level, calculate the optimal quantity of units for the firm to produce. Using the dats from the graph to determine the firm's total variable cost, calculate the profit of loss associated with producing that quantity. Assume that if the firm is indifferent between producing and shutting down, it will choose to produce, (Hint: Select purpla points [damond symbols] on the graph to receive exact average variable cost information.) If the firm shuts down, it must incur its fixed costs (FC) in the short nun. In this case, the firm's fixed cost is \( \$ 1,600,000 \) per day. In other words, if it shuts down, the firm would suffer losses of \( \$ 1,600,000 \) per day until its fived costs end (such as the expiration of a building lease). This firm's shutdown price-that is, the price below which it is optimal for the firm to shut down-is per pressure cooker.