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Figure 7.2a - 3D Visualization of a Two-Variable Profit Function
Figure 7.2a provides a three-dimensional visualization of how a firm's profit depends on quantity (Q) and price (P). The diagram features two horizontal axes for quantity (0 to 80,000) and price (0 to 10), and a vertical axis for profit (0 to 200,000). The colored surface represents the profit level for each (Q, P) combination, forming a 'profit hill.' This hill's height is zero when quantity is zero (Q=0) or when the price equals the unit cost (P=2). As P and Q increase from this base, profit rises. The diagram also includes contours that connect points of equal profit; for example, the point where P=4 and Q=50,000 lies on the 100,000 profit contour.
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Introduction to Microeconomics Course
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CORE Econ
Ch.7 The firm and its customers - The Economy 2.0 Microeconomics @ CORE Econ
The Economy 2.0 Microeconomics @ CORE Econ
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Figure 7.2a - 3D Visualization of a Two-Variable Profit Function
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