The table below displays cost information for a firm operating in a perfectly competitive market. Fill in the missing values corresponding to the empty cells. Average Total Cost $33 Quantity Total Cost Variable Cost Marginal Cost $33 $23 $38 1 2 A $15 3 $60 B 4 $54 D G $80 C E H 6 $88 $16.33 A = $ type your answer. B = $ type your answer. C = $ type your answer. D= $ type your answer... E = $ type your answer.. F = $ type your answer. G = $ type your answer... H = $ type your answer. Assume all fırms in the market have identical costs. With free entry and exit, what will the market price be in the long run? $ type your answer.

Consider the perfectly competitive market for sports jackets. The following graph shows the marginal cost ( MCMC ), average total cost ( ATCATC ), and average variable cost ( AVCAVC ) curves for a typical firm in the industry.

Thinking on the Margin to Increase Profitability Have you ever walked into a restaurant for lunch and found it almost empty? Why, you might ask, does the restaurant even bother to stay open? It might seem that the revenue from so few customers could possible cover the cost of running the restaurant. Provide an opinion using the concepts of sunk costs, marginal cost and marginal revenue.

Firms in the market for dog food are selling in a purely competitive market. A firm producing dog food has an output of 10,000 pounds of dog food, for which it sells for $0.50 a pound. At the output level of 10,000 pounds the average variable cost is $0.40, the average total cost is $0.70, and the marginal cost is $0.50. What do expect will happen in the long-run? Explain.

Question 5.5  T-Shirt Enterprises is selling in a purely competitive market.  It is producing 3,000 units, selling them for $2 each.  At this level of output, the average total cost is $2.50 and the average variable cost is $2.20.  Based on these data, the firm should                  shut down in the short run.        decrease output to 2,500 units.        ontinue to produce 3,000 units.        increase output to 3,500 units.

Given the following Information about a competitive firm's costs, calculate marginal cost and then answer three questions. Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) In front of those numbers. Output (Units) Total Cost Marginal Cost 10 $50 11 52 $ 2 12 56 $ 4 13 62 $ 6 14 70 $ 8 15 80 $ 10 16 92 $ 12 17 106 $ 14 18 122 $ 16 19 140 $ 18 a. If the prevailing market price is $12 per unit, how much should the firm produce? 16 units b. How much profit will it earn at that output rate? 100 c. If the firm Increases output by 1 unit, the firm will make more profit.

A firm has fixed costs of $40 and variable costs as indicated in the table below. For each level of output (total product) calculate total cost, average fixed cost, average variable cost, average total cost and marginal cost. Write your response in the table provided.   b)     Discuss why a firm in perfect competition will not charge a price above or below the market price.

Given the table below for a firm operating in a perfectly competitive market, what is the short run fixed cost? Output 0 1 2 3 $20 $10 $12 Total Cost $10 $20 $28 $34 Cannot be determined

Problems: Question #6: The Phantom Farms bakery produces pumpkin pies according to the following short run cost schedules. Assume the pumpkin pie industry is perfectly competitive and that the bakery can only produce and sell whole pies. AVC = ATC = MC = Quantity (pies) TFC = total TVC = total TC = total fixed cost variable cost average average total marginal cost variable cost cost cost (i) same as (i) 1 14 18 14.0 18 14 2 same as (i) (ii) 28 12.0 14 10 3 same as (i) 38 42 12.7 (v) 14 4 same as (i) 60 (iii) 15.0 16 22 same as (i) 86 90 17.2 18 (vi) same as (i) 116 120 (iv) 20 30 Fill in the five missing cost numbers indicated in the table above. (i) (ii) (iii) (iv) (v) (vi) If the price of pumpkin pies is $22 per pie, how many pies should Phantom Farms produce in the short run? What profit or loss does the firm earn? Explain how you arrived at this answer. Illustrate Phantom Farms' choice with a graph and indicate profits or losses. 3

The following cost data is for a firm which is selling in a perfectly competitive market: Average fixed Average variable Average total Total Marginal cost S17 product cost S100.00 50.00 33.33 25.00 20.00 cost $17.00 cost $117.00 66.00 47.33 39.25 34.00 2 16.00 15 3 4 15.00 14.25 14.00 14.00 15.71 17.50 13 12 13 16.67 14.29 12.50 11.11 10.00 9.09 7.33 30.67 30.00 14 26 30 35 7 8. 9. 10 11 30.00 30.55 31.60 33.09 35.00 19.44 21.60 41 24.00 48 12 26.67 56 Refer to the data above. If there were 600 identical firms in this industry and total or market demand is as shown below, equilibrium price will be: Quantity demanded 3,000 6,000 9,000 11,000 14,000 19,500 Price $50 42 36 32 20 13 $36