The graph on the left shows the short-run cost curves for a firm in a perfectly competitive market.

Marginal Revenue for the FIRM from selling the 46^th unit of output is $ .

In order to maximize profit, the firm should produce units.

Total Revenue at the profit-maximizing level of output is $ .

Total Cost at the profit-maximizing level of output is $ .

The maximum profit the firm can earn is $ .

The number of firms in this market is .

What do you expect to happen in the long-run?

The graph shows demand and marginal cost for a perfectly competitive firm.

If the firm is producing 100 units of output, increasing output by one unit would the firm’s profit by $ .

If the firm is producing 300 units of output, increasing output by one unit would   the firm’s profit by $ .

Firm A and firm B both have total revenues of $200,000 and total costs of $260,000.

Firm A has total fixed costs of $90,000, while firm B has total fixed costs of $20,000.

Which of the following statements are true in the short run?

I. Firm A should operate.