1. Identify the quantity of output that Firm A will produce
2. Evaluate price, quantity, and revenue for Firm A. Explain the relationship between demand and marginal revenue for perfectly competitive firms.
3. Why can't Firm A - a perfectly competitive firm - lower the price of its product to sell more output?
   

REVENUE for FIRM A COSTS for FIRM A OUTPUT | PRICE TR MR OUTPUT TC PERFECTLY COMPETITIVE FIRM A MC ATC P - $8 $8 8 $6 $11 2 $8 $16 8 2 $8 2 $10 3 $8 $24 3 $12 $9 4 $8 $32 4 $20 8 5 $8 5 $8 $40 8 5 $30 10 $7 Identify the quantity of output that Firm A will produce. 4 $6 Evaluate price, quantity, and revenue for Firm A. Explain the relationship between demand and marginal revenue for perfectly competitive firms. The marginal revenue will be zero at the equilibrium point and the demand will be also constantly Why can't Firm A - a perfectly competitive firm - lower the price of its product to sell more output? 2 W 5