Consider the following table of numbers, which represents demand and cost conditions for a competitive firm. The price of the product this firm produces is $50. $$\begin{array} { | c | c | c | c | c | c | c | c | }
\hline \text { Q } & \text { TFC } & \text { MC } & \text { TVC } & \text { TC } & \text { TR } & \text { MR } & \text { Total Profit } \
\hline 0 & 30 & 0 & & & & & \
\hline 1 & & 20 & & & & & \
\hline 2 & & 30 & & & & & \
\hline 3 & & 40 & & & & & \
\hline 4 & & 50 & & & & & \
\hline 5 & & 60 & & & & & \
\hline 6 & & 70 & & & & & \
\hline
\end{array}$$ (a) Fill in the missing values.
(b) What level of output should the firm produces? Why?
(c) What do you predict will happen to the number of firms in the industry? Why?
(d) What do you predict will happen to supply and the market price?
(e) At which price must the firm shut down?

Question

Consider the following table of numbers, which represents demand and cost conditions for a competitive firm. The price of the product this firm produces is $50. $$\begin{array} { | c | c | c | c | c | c | c | c | } 
\hline \text { Q } & \text { TFC } & \text { MC } & \text { TVC } & \text { TC } & \text { TR } & \text { MR } & \text { Total Profit } \
\hline 0 & 30 & 0 & & & & & \
\hline 1 & & 20 & & & & & \
\hline 2 & & 30 & & & & & \
\hline 3 & & 40 & & & & & \
\hline 4 & & 50 & & & & & \
\hline 5 & & 60 & & & & & \
\hline 6 & & 70 & & & & & \
\hline
\end{array}$$ (a) Fill in the missing values.
(b) What level of output should the firm produces? Why?
(c) What do you predict will happen to the number of firms in the industry? Why?
(d) What do you predict will happen to supply and the market price?
(e) At which price must the firm shut down?

Quizplus · Accepted Answer

The Answer of Consider the following table of numbers, which represents demand and cost conditions for a competitive firm. The price of the product this firm produces is $50. $$\begin{array} { | c | c | c | c | c | c | c | c | } 
\hline \text { Q } & \text { TFC } & \text { MC } & \text { TVC } & \text { TC } & \text { TR } & \text { MR } & \text { Total Profit } \
\hline 0 & 30 & 0 & & & & & \
\hline 1 & & 20 & & & & & \
\hline 2 & & 30 & & & & & \
\hline 3 & & 40 & & & & & \
\hline 4 & & 50 & & & & & \
\hline 5 & & 60 & & & & & \
\hline 6 & & 70 & & & & & \
\hline
\end{array}$$ (a) Fill in the missing values.
(b) What level of output should the firm produces? Why?
(c) What do you predict will happen to the number of firms in the industry? Why?
(d) What do you predict will happen to supply and the market price?
(e) At which price must the firm shut down?

Consider the Following Table of Numbers, Which Represents Demand and Cost