Quantity(Patties per hour) Total cost(dollars per patty)
0 30
1 40
2 55
3 75
4 100
5 130
6 165

Describe the features of a perfectively competitive market.
Ray Patty Company is a business in a perfectly competitive market for the production of patties. The table sets out Ray’s costs. If the market price is $30 a patty:
How many patties an hour does Ray's Patty Company makes?
What is Ray’s profit in the short run?
Under what conditions will new firms enter a perfectly competitive market?
State clearly the shut down conditions?
Will a perfectly competitive firm ever produce in the short run even though it is suffering an economic loss? Use a graph to explain.