Part 2 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? D. to ated 1263 brib Sunevs Figure 5.6 Short-Run Cost Conditions Faced by a Perfectly Competitive Firm Price and Cost $50 MC 40 30 20 ATC AVC 10 0 1 2 3 4 5 6 7 8 9 10 imb Quantity prim