Pure Competition

All five parts (a-e).

a. Graph a purely competitive market showing the point of equilibrium at a price of $65 and a total product of 70,000.

b. Next to this graph, graph the purely competitive firm. What price will the firm charge for the product?

c. Show the demand, average revenue, and marginal revenue curve on the graph for the firm.

d. Show the profit maximizing quantity for the firm at 800 units of output, or tp.

e. Show this firm earning a profit of $12,000, making sure to solve for the ATC value at the quantity, or total product, of 800.