Question

 2. The demand curve facing a competitive firm

 The following graph shows the daily market for small cardboard boxes in Detroit.

 Suppose that Talero is one of more than a hundred competitive firms in Detroit that produce such cardboard boxes. 

Based on the preceding graph showing the daily market demand and supply curves, the price Talero must take as given is _______ .

 Fill in the price and the total, marginal, and average revenue Talero earns when it produces 0, 1, 2, or 3 boxes each day.

The demand curve that Talero faces is identical to which of its other curves? Check all that apply. 

• Average revenue curve 

• Supply curve 

• Marginal revenue curve 

• Marginal cost curve
  

Answer 1

the price Talero must given is $5.

Explnation:

Firm in competitive markets are price taker. so they charge price acording to market price.

market price is when demand and supply intersects.

Q	Price	TR	MR	AR
0	5	0
1	5	5	5	5
2	5	10	5	5
3	5	15	5	5

TR=price*q

MR=change in TR/Change in Q

AR=TR/Q

the demand curve that teralo face is identical to which of the following curve?

Avrage revenue curve

marginal revenue curve

Explanation:

demand curve is made from the combination of price and quantity demanded. so as this firm is price taker, price will be equal to same at every level of output. thus demand curve will be horizontal. MR abd AR, both are same as price so the their curves are identical to demand curve.