If a firm sells a good which is in some respects distinct from goods sold by other firms, its demand curve will usually slope downwards.

The

firm is able to sell 40 more of the product at price £1,000 on red

On blue, for the price £5,000

the firm is able to sell 15 of the product.

On red, for the output of 70

the firm is able to charge the price £3,000.

Both demand curves imply that the firm is operating in a perfectly competitive market.

Both demand curves imply that at some level of output the firm would simply end up giving its products away

The

firm is able to charge a maximum of £2,000 more for the product at output 30 on red than on blue.

Red implies that the market for the firm's product will disappear if it sets a price of 6,000 or higher.