2. The demand curve facing a perfectly competitive firm Talero is one of more than a hundred perfectly competitive firms in Denver that produce small cardboard boxes for moving. The following graph shows the daily market demand and supply curves facing the small cardboard box industry. PRICE (Dollars per small box) 10 Demand 9 8 1 0 0 + 1 3 5 6 7 QUANTITY (Millions of small boxes) 2 4 8 Supply 9 10

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Firms In Competitive Markets
Section: Chapter Questions
Problem 8PA
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I'm not sure how to graph this and I'm not sure if I am answering the questions correctly

On the following graph, use the green line (triangle symbol) to plot the demand curve for Talero's small cardboard boxes. (Hint: Remember that
perfectly competitive firms must accept the given market price.)
PRICE (Dollars per small box)
10
9
8
2
1
0
0
1
2
3
2
3
5
6
7
8
QUANTITY (Thousands of small boxes)
Quantity
Price
(Boxes) (Dollars per box)
0
5
1
5
5
5
4
In the following table, fill in the price and the total and marginal revenue Talero earns when it produces 0, 1, 2, or 3 boxes each day.
Total Revenue Marginal Revenue
(Dollars)
0
Supply curve
Total revenue curve
Marginal revenue curve
O Marginal cost curve
5
9
10
15
10
The demand curve that Talero faces is identical to which of its other curves? Check all that apply.
(Dollars)
Demand
5
5
5
Transcribed Image Text:On the following graph, use the green line (triangle symbol) to plot the demand curve for Talero's small cardboard boxes. (Hint: Remember that perfectly competitive firms must accept the given market price.) PRICE (Dollars per small box) 10 9 8 2 1 0 0 1 2 3 2 3 5 6 7 8 QUANTITY (Thousands of small boxes) Quantity Price (Boxes) (Dollars per box) 0 5 1 5 5 5 4 In the following table, fill in the price and the total and marginal revenue Talero earns when it produces 0, 1, 2, or 3 boxes each day. Total Revenue Marginal Revenue (Dollars) 0 Supply curve Total revenue curve Marginal revenue curve O Marginal cost curve 5 9 10 15 10 The demand curve that Talero faces is identical to which of its other curves? Check all that apply. (Dollars) Demand 5 5 5
2. The demand curve facing a perfectly competitive firm
Talero is one of more than a hundred perfectly competitive firms in Denver that produce small cardboard boxes for moving. The following graph shows
the daily market demand and supply curves facing the small cardboard box industry.
PRICE (Dollars per small box)
10
9
8
6
2
1
0
0
Demand
1
+
3
5
6
7
QUANTITY (Millions of small boxes)
2
4
8
Supply
9 10
?
Transcribed Image Text:2. The demand curve facing a perfectly competitive firm Talero is one of more than a hundred perfectly competitive firms in Denver that produce small cardboard boxes for moving. The following graph shows the daily market demand and supply curves facing the small cardboard box industry. PRICE (Dollars per small box) 10 9 8 6 2 1 0 0 Demand 1 + 3 5 6 7 QUANTITY (Millions of small boxes) 2 4 8 Supply 9 10 ?
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