The market is perfectly competitive and there are 1,000 firms that produce paper. A table below sets out the market demand schedule for paper and cost schedule for paper producing firm when it uses its least-cost plant.

Describe a firm’s shutdown decision.

Maria manages a​ bakery, that specializes in ciabatta​ bread, and has the following information on demand and​ costs:   Ciabatta Bread Sold Per Hour​ (Q) Price​ (P) Total Cost​ (TC) 0 ​$6.00 ​$1.50 1 5.50 6.00 2 5.00 9.50 3 4.50 12.50 4 4.00 15.00 5 3.50 17.00 6 3.00 18.50 7 2.50 20.50 8 2.00 23.50 a. To maximize​ profits, Maria should sell nothing loaves of ciabatta bread per hour. ​(Enter your response as an​ integer.)

Suppose Poornima runs a small business that manufactures teddy bears. Assume that the market for teddy bears is a competitive market, and the market price is $25 per teddy bear. The following graph shows Poornima's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for teddy bears quantities zero through seven (inclusive) that Poornima produces.   Calculate Poornima's marginal revenue and marginal cost for the first seven teddy bears she produces, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity.   Poornima's profit is maximized when she produces   teddy bears. When she does this, the marginal cost of the last teddy bear she produces is   , which is    than the price Poornima receives for each teddy bear she sells. The marginal cost of producing an additional teddy bear (that…