The following table shows partial cost information of White T-shirt Manufacturing Company. The T-shirt market is a perfectly competitive market. Quantity Total fixed cost Average variable cost $70 $70 $10 1 $70 $15 $70 $20 3 $70 $25 4 $70 $32 $70 $40 The market price of T-shirt is $60 each. At what quantity should the company produce to maximize profit/minimize loss? Explain A. your answer. Calculate the profit or loss of the company if it produces at the quantity that maximizes B. profit/minimize loss. Is the current situation in a long-run equilibrium? Explain you answer. C. At what quantity is the company's Efficient Scale? Explain your answer. D.

Amos McCoy is currently raising corn on his 100-acre farm and earning an accounting profit of $100 per acre. However, if he raised soybeans, he could earned an accounting profit of $200 per acre. Is he currently earning an economic profit?

QUESTION 10 Jack sells water bottles. Assume the market for water bottles is perfectly competitive. Jack sells his water bottles at the market price of $9.00. At the profit-maximising output level of 51 water bottles, Jack's average total cost is $4.40 per water bottle. The minimum average variable cost is $3.90 per water bottle. Answer the following questions: a. Jack's economic profit or loss is decimal places (ie: to the nearest cent). (use a negative value if a loss). Answer in dollars, rounded to two b. State whether the following statement is true or false: "At the profit-maximising quantity, Jack is making an economic profit of $4.60 per water bottle." Type T for true, or F for false c. State whether the following statement is true or false: "Jack should shut down if the market price is $3.85 per water bottle." Type T for true, or F for false

1) The cost curves for a firm in a perfectly competitive industry are given below. Complete the table. If the firm operates in a perfectly competitive market, and the market price is $25 per unit, what Quantity should this firm produce at? TFC TC TVC AVC ATC MC TR S100 S100 1 S100 S130 2 S100 S150 S100 S160 S100 S172 5 S100 S185 6 S100 $210 S100 $240 S100 $280 S100 $330 10 S100 $390 Table 9.1