No explanations needed, just answers.

1. Because there are a large number of buyers and sellers in the market, perfectly competitive firms are __________.

a.) price setters

b.) price takers

c.) price competitors

d.) price makers

2. Consider the diagram below. At a selling price of $12 per unit, how much profit or loss is this perfectly competitive firm experiencing, and should they continue to produce or shut down temporarily?

\fPrice of Labor (Wage per hour} above bekwv 0 0 Quantity of Labor X