1. Refer to the graph below of a perfectly competitive market. How many units will the firm choose to sell, and at what price? In the short term, what will be the total revenue, total cost, and total profit of the firm? If at some point in the future the market price fell below $6 (for example where Point A is) what would the firm do? Revenue and cost (dollars per unit) $20 11 10 6 O b 200 250 d 300 MC ATC AVC MR Quantity

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