The table above has some cost data for a perfectly competitive firm

The table above has some cost data for a perfectly competitive firm. Assume that only whole quantities of the good can be produced.

q FC VC TC MC AVC ATC
0 N/A N/A N/A
1 17
2 13
3 74
4 240
5 25 17
6 120
7 50
8 30.625

a) Fill in the missing items in the following table. I would suggest completing the table, cut it out, and paste it (either electronically or physically) onto the sheet you turn in. You can round decimal answers to 3 places or leave the numbers as fractions. (1 point)
b) Find the short run profit maximizing level of output and profit if the price of output is 30. (1 point)
c) Find the short run profit maximizing level of output and profit if the price of output is 12.5. (1 point)
d) If there are 80 firms in the short run, and the market demand is P = -2Qd + 1000, explain why P = 60 is not the SRCE price. (1 point)
e) Find the SRCE price. (1 point)

Here’s the SOLUTION

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