Falero is one of more than a hundred perfectly competitive firms in Denver that produce extra- large cardboard boxes for moving. The following graph shows the daily market demand and supply curves facing the extra-large cardboard box industry. PRICE (Dollars per extra-large box) 50 50 45 40 35 30 25 20 15 H 10 5 0 0 I Demand I 1 Supply 2 3 4 8 6 7 QUANTITY (Millions of extra-large boxes) 9 10 On the following graph, use the green line (triangle symbol) to plot the demand curve for Falero's extra-large cardboard boxes. (Hint: Remember that perfectly competitive firms must accept the given market price.) ? A
Falero is one of more than a hundred perfectly competitive firms in Denver that produce extra- large cardboard boxes for moving. The following graph shows the daily market demand and supply curves facing the extra-large cardboard box industry. PRICE (Dollars per extra-large box) 50 50 45 40 35 30 25 20 15 H 10 5 0 0 I Demand I 1 Supply 2 3 4 8 6 7 QUANTITY (Millions of extra-large boxes) 9 10 On the following graph, use the green line (triangle symbol) to plot the demand curve for Falero's extra-large cardboard boxes. (Hint: Remember that perfectly competitive firms must accept the given market price.) ? A
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Falero is one of more than a hundred perfectly competitive firms in Denver that produce extra-
large cardboard boxes for moving. The following graph shows the daily market demand and supply
curves facing the extra-large cardboard box industry.
PRICE (Dollars per extra-large box)
PRICE (Dollars per extra-large box)
50
45
40
35
30
25
20
15
10
5
50
0
45
40
35
30
25
20
15
10
On the following graph, use the green line (triangle symbol) to plot the demand curve for Falero's
extra-large cardboard boxes. (Hint: Remember that perfectly competitive firms must accept the
given market price.)
5
0
0
+
0
Demand
1
I
8
2 3 4 5 6 7
QUANTITY (Millions of extra-large boxes)
Supply
+
1 2 3 4
5 6 7 8
QUANTITY (Thousands of extra-large boxes)
9
9
10
10
Demand
(?)
(?)
Transcribed Image Text:PRICE (Dollars per extra-l
3.0
25
20
15
10
15
0
10
1
2
7
8
QUANTITY (Thousands of extra-large boxes)
9
Quantity
Price
(Boxes) (Dollars per box)
0
1
2
3
10
In the following table, fill in the price and the total and marginal revenue Falero earns when it
produces 0, 1, 2, or 3 boxes each day.
Total Revenue Marginal Revenue
(Dollars)
(Dollars)
0
The demand curve that Falero faces is identical to which of its other curves? Check all that apply.
Marginal cost curve
Supply curve
Marginal revenue curve
Total revenue curve
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