Suppose Veronica sells teapots in the perfectly competitive teapot market. Her output per day and her costs are as follows:

Output per Day Total Cost
0 $20
1 32
2 37
3 48
4 61
5 75
6 92
7 113
8 136

Suppose the current equilibrium price in the teapot market is $10. To maximize profit, how many teapots will Veronica produce, what price will she charge, and how much profit (or loss) will she make? Draw a graph to illustrate your answer. Your graph should include Veronica's demand, ATC, AVC, MC, and MR curves, the price she is charging, the quantity she is producing, and the area representing her profit (or loss).

Veronica will produce 2 teapots per day. She will charge the market price of $10. She will make a profit of $-17 (a loss of $17).