Question

please help!!

TC AFC AVC ATC MC 40 60 20 lo 25 2 40 30 15 to 10 125 ms S 10 12.5 14 110 140 60 100.2 20 25. Но 25.7 3.9 179.9 5.7 111. 23115 24.9 2.0 9 300 334.3 44333 31.7 9q.4 10 40 HU0530 4uo.7 99. a. Fill out the table b. Assume the cost table is of the purely (perfectly) competitive firm. Price $40. What is the equilibrium quantity at that price. c. How much is the Profit/or Loss/or breakeven point d. What is the Marginal Revenue for this question e. Draw the necessary graphs as shown in class. Identify Q, P at equilibrium, and identify the total revenue and total cost areas, and the Profit, or loss or breakeven area which is applicable to this question.

Answer 1

a.

Q	TFC	TVC	TC	AFC	AVC	ATC	MC	MR	TR
0	40		40					40	0
1	40	20	60	40.00	20.00	60.00	20	40	40
2	40	30	70	20.00	15.00	35.00	10	40	80
3	40	35	75	13.33	11.67	25.00	5	40	120
4	40	50	90	10.00	12.50	22.50	15	40	160
5	40	70	110	8.00	14.00	22.00	20	40	200
6	40	100	140	6.67	16.67	23.33	30	40	240
7	40	140	180	5.71	20.00	25.71	40	40	280
8	40	200	240	5.00	25.00	30.00	60	40	320
9	40	300	340	4.44	33.33	37.78	100	40	360
10	40	460	500	4.00	46.00	50.00	160	40	400

Equilibrium quantity is 7, where MC=MR=40b.

c. Profit = TR-TC = 40*7-180 = 280-180=100

d. MR = P= 40

e.

180 160 141 120 100 a 80 60 P 40 -MC 씻) 20 0 T 0 1 23 4 5 6 7 8 910 11 Quantity

600 500 400 300 TC TR 200 Profii 100 0 0 1 2 3 45 6 7 8 9 10 11 Quantity