(Q EOC 12.3 a Homework 0 Answered There are 100 competitive firms each of the size represented by AC1, and AC2 represents the onlyr firm ifthere were a monopoly. In the figure below, how much will a single competitive firm produce? [Figure description: The graph for individual rms and the graph for the market are placed side by side. Cm both graphs, the dollar value is on the vertical axis and quantity;' is on the horizontal axis. On the graph for individual firms, both the long-run average cost curve {AC} and the marginal cost curve {MC} are convex and slope downward; the marginal cost is always lower than the long-run average cost. There are two sets of upward sloping firm-level marginal costand U-shaped average cost curves. MC1 and AC1 are higher and closesrto the vertical axis. The intersection of MCl and AC1, which is also ACl's minimum, sets the cost at $35. In total, the 10:]I firms represented by MCl and AC1 produce 30m, which is reflected as a point on the demand curve on the market graph. MC2 and AC2 are lowerand more to the right. The intersection of MC2 and AC2 sets a lower cost of $15; these two curves are also drawn on the market graph, which shows a production quantity of25m. Cm the market graph, the demand curve slopes downward, representing all the combination oftotal quantities produced and prices derived from individual competitive firms' production and cost, such as 20m at price $50, 30m at $35, and 50m at price $15. The marginal revenue curve slopes downward steeply and becomes negative when quantity exceeds approximatelvzzb. The marginal revenue and marginal cost curves intersect at quantity 20m, cost $10.] Price Quantity 20m 30m 35m 50m 55m Quantity Select an answer and submit. For keyboard navigation, use the upfdown arrow keys to select an answer. Price Price $50 $35 $30 $15 $10 -AC MC Quantity 20m 30m 35m 50m 55m Quantity Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a .lm .2m X Your answer C 3m d .35m e .5m Hint X How does the market output relate to individual firm output in a perfectly competitive industry