1. Below are the MC and D curves of a perfectly competitive firm that seeks to maximize profit. marginal cost Price, cost $7.00 $6.50 $5.00 $3.00 $2.00 B demand $0.00 0 10 20 30 40 50 60 70 Quantity A) The market price = $ B) Marginal revenue = $ C) This firm should produce units. 2) The supply curve for the perfectly competitive firm is best represented by the segment: MC Price, cost E ATC AVC A B Quantity A) AE. B) BE. C) CE. D) DE. Quantity Marginal| Cost 1 $3 2 5 3 7 4 9 3) (Use the table on the left) If the market price is $6, a perfectly competitive profit-maximizing firm will produce units of output. Quantity Total Cost Total Revenue Profit 10 $25 20 60 30 105 40 160 4) Fill in the total revenue column assuming the market price is $5. The maximum profit that the perfectly competitive firm could earn is $ 5) What distance represents profits? (You may use letters or shade in the area.) Price 700 650 600 550 500 450 400 D 350 300 250 200 150 100 50 0 MC A P=MR E BATC AVC F W 1 2 3 4 5 6 7 8 9 10 11 12 Quantity