A car manufacturing firm's zero-economic-profit curve represents all combinations of price and quantity where total revenue equals total cost. Consider another curve for the same firm, representing all price and quantity combinations that would yield a consistent, positive economic profit of $50,000. How would this new '$50,000-profit' curve be positioned graphically relative to the zero-economic-profit curve?
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A car manufacturing firm's zero-economic-profit curve represents all combinations of price and quantity where total revenue equals total cost. Consider another curve for the same firm, representing all price and quantity combinations that would yield a consistent, positive economic profit of $50,000. How would this new '$50,000-profit' curve be positioned graphically relative to the zero-economic-profit curve?
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