Will roger continue to produce and sell marks

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Rogers runs a Creepy Caricature Mask Company, a local firm that produces and sells Halloween masks that look like local university students, such as the Daniel mask. It turns out that Creepy Caricature is part of a perfectly competitive industry. At the minimum of Roger’s AVC curve, q = 20 and AVC is $2.00. At a minimum of his ATC curve, q=25 and ATC=$5.00. The market price is $1.00 and currently producing 18 units of output. a. Is Roger making a positive profit? Why or Why not? b. In the short-run, will Roger continue to produce and sell marks, or will he shut down? Why? c. Show the situation graphically, using the MC, MR, ATC, and AVC curves for Creepy Caricatures described, and also showing the supply and demand curves for Creepy Caricature

Reference no: EM131107374

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Will roger continue to produce and sell marks : Rogers runs a Creepy Caricature Mask Company, a local firm that produces and sells Halloween masks that look like local university students, such as the Daniel mask. It turns out that Creepy Caricature is part of a perfectly competitive industry. In ..

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