Please provide accurate and correct answers to both questions without explanation. Thank you for your assistance. In a perfectly competitive market, when the market price of a good is $40. Referring to the belowgraph, what will be the marginal revenue when the firm increases production from 4 to 5 unitsper day.a) $30b) $20c) $40d) $105045-4035-30-25-20-1510-5Price (dollars per picture frame)Quantity (picture frames per day)10 Describe what happens in the long run:3632282420161284MC1ATC₁AVC₁D₁2 4 6 8 10 12 14 16 18a) There will be an increase in price until the economic profit is zero.b) There will be a decline in demand causing economic profits to decline.c) There will be a decline in price until the economic profit is zero.d) There will be an increase in demand causing economic profits to decline.

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In a perfectly competitive market, when the market price of a good is $40. Referring to the below graph, what will be the marginal revenue when the firm increases production from 4 to 5 units per day. a) $30 b) $20 c) $40 d) $10 50 45 400 35- 30- 25- 20 15- 10 5 Price (dollars per picture frame) Quantity (picture frames per day)

In a perfectly competitive market, when the market price of a good is $40. Referring to the below graph, what will be the marginal revenue when the firm increases production from 4 to 5 units per day. a) $30 b) $20 c) $40 d) $10 50 45 400 35- 30- 25- 20 15- 10 5 Price (dollars per picture frame) Quantity (picture frames per day)

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 12P

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