Question

The table below represents the output and cost structure for a firm. The market is perfectly competitive, and the market price is $10. Total costs include all implicit opportunity costs.

Output	Total Cost	Total Revenue	Profit	Marginal Cost	Marginal Revenue	Averrage Total Cost	Average Variable Cost
0	3	0
1	7	10
2	9	20
3	10	30
4	12	40
5	16	50
6	22	60
7	30	70
8	40	80
9	52	90

10

68

100

1. Calculate the firm’s profit at each rate of output and fill in the values in the table.

2. Calculate firm's marginal cost and marginal revenue at each rate of output and fill in the values in the table.

3. Calculate the firm’s average total costs and average variable costs at each rate of output and fill in the values in the table.

4. Based on the information in the table above, plot marginal cost (MC) at each rate of output. Properly label this line.

5. Based on the information in the table above, plot marginal revenue (MR) at each rate of output. Properly label each line.

6. Based on the information in the table above, plot average total costs (ATC) and average variable costs at each rate of output. Properly label each line.

7. Highlight in yellow the short-run supply curve for this perfectly competitive firm.

8. Based on marginal analysis, what is the profit-maximizing rate of output for the firm?

Answer 1

Quest Q TR MC MR AVC ATC TC 3 7 U -3 3 o 7 4.5 9. 2 2 3 y 10 20 30 yo 10 3.33 0 2 प 3 10 10 lu 10 lo 10 10 10 34 12 16 22 30 yo S 6 7 0 4 13 2.33 9.25 2.6 3.16 3.85 4.625 S.44 bos 38 to to 80 90 100 0 3.2 3.66 4.27 5 5.99 6.8 40 yo 38 32 6 8 10 12 16 10 10 10 68 curve y 8 to supply (MC AVC MC Prica cost MR CATC 8 47 ANC Х 2 to OR Profit max output is at MR - Me which 8 units مث