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Use the Following Table to Answer the Questions That Follow

Question 293

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Use the following table to answer the questions that follow it.
a. If the perfectly competitive firm faces a market price of $7.50, the firm should produce _____ units for a (profit/loss) of $_____.
b. If the price falls below $_____, the firm should shut down.
c. If the perfectly competitive firm faces a market price of $4.50, it should produce _____ units for a (profit/loss) of $_____.
Q ATC  AVC  AFC  MC 01$13.00$8.00$5.0082$8.00$5.50$2.5033$6.00$4.33$1.6724$5.25$4.00$1.2535$5.00$4.00$1.0046$5.00$4.17$0.8357$5.14$4.43$0.7168$5.38$4.75$0.6379$5.67$5.11$0.56810$6.00$5.50$0.509\begin{array}{|c|c|c|c|c|}\hline Q & \text { ATC } & \text { AVC } & \text { AFC } & \text { MC } \\\hline 0 & - & - & - & - \\\hline 1 & \$ 13.00 & \$ 8.00 & \$ 5.00 & 8 \\\hline 2 & \$ 8.00 & \$ 5.50 & \$ 2.50 & 3 \\\hline 3 & \$ 6.00 & \$ 4.33 & \$ 1.67 & 2 \\\hline 4 & \$ 5.25 & \$ 4.00 & \$ 1.25 & 3 \\\hline 5 & \$ 5.00 & \$ 4.00 & \$ 1.00 & 4 \\\hline 6 & \$ 5.00 & \$ 4.17 & \$ 0.83 & 5 \\\hline 7 & \$ 5.14 & \$ 4.43 & \$ 0.71 & 6 \\\hline 8 & \$ 5.38 & \$ 4.75 & \$ 0.63 & 7 \\\hline 9 & \$ 5.67 & \$ 5.11 & \$ 0.56 & 8 \\\hline 10 & \$ 6.00 & \$ 5.50 & \$ 0.50 & 9 \\\hline\end{array}

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