Suppose that the market for blenders is a perfectly competitive market. The following graph shows the daily cost curves of a firm operating in this market. PRICE (Dollars per blender) 100 90 80 70 60 50 40 30 20 10 0 H 0 MC ATC AVC 5 10 15 20 25 30 QUANTITY (Thousands of blenders) 35 40 45 50 Profit or Loss In the short run, at a market price of $35 per blender, this firm will choose to produce blenders per day. On the previous graph, use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss if the market price is $35 and the firm chooses to produce the quantity you already selected. Note: In the following question, you should enter a positive number in the numeric entry field. The area of this rectangle indicates that the firm's would be $ per day.

Suppose that the market for blenders is a perfectly competitive market. The following graph shows the daily cost curves of a firm operating in this market. PRICE (Dollars per blender) 100 90 80 70 60 50 40 30 20 10 0 H 0 MC ATC AVC 5 10 15 20 25 30 QUANTITY (Thousands of blenders) 35 40 45 50 Profit or Loss In the short run, at a market price of $35 per blender, this firm will choose to produce blenders per day. On the previous graph, use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss if the market price is $35 and the firm chooses to produce the quantity you already selected. Note: In the following question, you should enter a positive number in the numeric entry field. The area of this rectangle indicates that the firm's would be $ per day.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 1SCQ: Firms ill a perfectly competitive market are said to be price takers that is, once the market...

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Firms ill a perfectly competitive market are said to be price takers that is, once the market determines an equilibrium price for the product, firms must accept this price. If you sell a product in a perfectly competitive market, but you are not happy with its price, would you raise the price, even by a cent?
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