Matthew is a producer in the market for raspberries. The market for raspberries is perfectly competitive. The following questions are about Matthew's raspberries farm.
In the short run, each package of raspberries is sold for $4.60. When Matthew maximizes his profit, he produces 100 packages of raspberries each month. At the maximum profit, Matthew's average total cost is $6.10 and Matthew's average variable cost is $3.60. Choose from the brackets to fill the gaps
Then, Matthew earns $ (-150 / 100 / -100 / 200 / -200) of total profit from selling 100 packages of raspberries.
The difference between the price and average variable cost is $ (0.50 / 1.80 / -1.20 / -0.50 / 1) , and Matthew (operates / shuts down) in the short run.
Due to existing firms' profit (or loss) in the short run, firms (exit / enter) in the long run.
As the market adjusts in the long run, the demand for each firm's products (increases / decreases / stays the same). Eventually, firms will earn a (positive / zero / negative) profit.