8. Figure 5.6 shows the short-run cost conditions faced by a perfectly competitive firm. a. If the product price equals $35 per unit, the firm would maximize profits or minimize losses by producing and selling units of output. At this level of output, the firm's total revenue equals total cost equals and total profit (loss) equals b. If the product price equals $20 per unit, the firm would maximize profit or minimize losses by producing and selling units of output. At this level of output, the firm's total revenue equals _, total cost equals and total profit (loss) equals Why would the firm prefer to continue to produce rather than shut down? c. If the product price equals $10 per unit, the firm would maximize profits or minimize losses by producing and selling units of output. Why? stugmo? IgolonnosT stenand). to ated /260 bing Sunovel Figure 5.6 Short-Run Cost Conditions Faced by a Perfectly Competitive Firm Price and Cost $50 MC 40 30 ATC 20 AVC 10 0 1 2 3 4 5 6 7 8 9 10 Quantity