Chapter 7 Graphing Exercise 1 Perfectively Competitive Market Instructions The students will complete the questions as they relate to either the graphs provided or creation of the graphs by the students. This is intended to reinforce the information gained in this module on graphing. It will be worth 20 points. Expectations The student will complete the questions and submit to the instructor for feedback. You can either type your answers or you can write them in, scan and then submit to the online assignments. Submit your graphs to Blackboard. l. The graph below provides a perfectly competitive graph for a firm in the short run, complete la ld using the graph. (10 points) Price and costs per unit {dollars} 0 500 1,000 1,500 2,000 2,500 Quantity of output [units perweek} a. Assume the price of the firm's product in the graph is $15 per unit. The firm will produce how many units per week, Why? (2 points) b. At what price would the firm earn a zero economic prot in the short-run? Why? (2 points) c. If the price the firm faces for g product is $6 per unit. What should the firm do? (2 points) d. Assume the price of the firm's product in Exhibit 1 is $10 per unit. The maximum prot the firm earns is? Why? (4 points)