Florida girl's death brings to light tonsillectomy risks. September 23, 2010|By Lorri Helfand and Letitia Stein, St. Petersburg Times. The recent death of a seemingly healthy, 12-year-old Pinellas County girl following a tonsillectomy may have many parents worried about one of the most common surgical procedures performed in children.
In a perfectly competitive market price is equal to marginal revenue. Price will also equal average cost. If price was greater than average cost the firms in the market would be making profit. This would lead to more firms entering (remember no barriers to entry) until profits are eliminated.
If the market price for the firm's product is $32, the competitive firm will produce: A 1. 8 units at an economic profit of $16. 2. 5 units at a loss of $10. 3. 8 units at a loss equal to the firm's total fixed cost.. Refer to the above diagram. This firm's demand and marginal revenue curves are based on the assumption that: 1. the firm has no immediate rivals. 2. rivals will match both a price increase and a price decrease. 3. rivals will match a price increase, but ignore a price decrease.