principle economic
3. The table below represents cost data for Matters & Sons which sells paper plates in a perfectly competitive market for a price of $2 per package:
Output (packages/minute) Total Fixed Cost Total Variable Cost
0 6 0.00 1 6 0.25 2 6 0.75 3 6 2.75 4 6 3.75 5 6 6.75
How many units of the output will this firm produce? How much profit will it earn? Will the firm choose to operate in the short run? Will the firm choose to operate in the long run? Explain.
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