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Saved Smkt 4.50 MC Firm ATC 4.00 3.50 3.00 Book . . . . . . 2.50 DFirm 2.00 1.50 1.00 0.50 mkt 1 2 3 4 6 7 8 9 10 0 20 40 60 80 100 120 140 160 180 200 QFirm Quantity (thousands per week) Quantity (units per week) OF SETTINGS Reset EE PROFIT CALCULATIONS Market Demand Price ( Pmkt ) $2.50 Marginal Cost (MC) $2.50 Quantity (by the firm) Marginal Revenue (MR) $2.50 Revenue $200.00 Quantity (50 - 150) 80 Costs $200.00 Price Adjustment Profit $0.00 Instructions: Move the Market Demand slider as instructed. Later, press the Price Adjustment button and observe the animations in the graph. If needed, use the Reset button in the Settings window to start over. Suppose the demand curve shifts so that the market price is $2.34. a) At this price, how many units should the firm sell to maximize profits? units b) When this firm maximizes its profits, what will its profits be? $ c) As this industry adjusts towards a long run equilibrium, the number of firms in the industry will |(Click to select)