Question

I. Fill in the remaining cells of the table. Assume perfectly competition. This firm sells its product for $150 TC 200 AFC ATC MC AVC Profit 2 100 20 240 5 24 660 160

Answer 1

TC = TVC + TFC

TFC = TC - TVC

TVC = TC - TFC

AC = TC/Q

AC = AFC + AVC

AFC = TFC/Q

AVC = TVC/Q

MC = $\Delta$TC/$\Delta$Q

AFC = 24

AFC = TFC/Q

TFC = AFC$\times$Q

= 24$\times$5

= 120

Q	P	TR =P$\times$Q	TC	TVC	TFC	AFC	ATC	MC	AVC	Profit = TR - TC
1	150	150	200	80	120	120	200	200	80	- 50
2	150	300	220	100	120	60	110	20	50	80
3	150	450	240	120	120	40	80	20	40	210
4	150	600	360	240	120	30	90	120	60	240
5	150	750	500	380	120	24	100	140	76	250
6	150	900	660	540	120	20	110	160	90	240