4. Assume that a perfectly competitive firm has the schedule of total fixed and total variable costs given in the table below. Fill in the total cost column. Output TFC 0 $500 2 500 4 500 6 500 8 500 10 500 Output 0 2 4 6 8 10 $ 50 150 250 TVC $0 200 340 590 1000 1650 (a) Complete the table below to show the total revenue and total profit of the firm at each level of output the firm might produce. Assume market prices of $50, $150, and $250. $ $ Market price = $50 Total revenue TC Profit (+) or loss (-) $ Market price = $150 Total revenue $ Profit (+) or loss (-) $ Market price = $250 Total revenue $ Profit (+) or loss (-) $

4. Assume that a perfectly competitive firm has the schedule of total fixed and total variable costs given in the table below. Fill in the total cost column. Output TFC 0 $500 2 500 4 500 6 500 8 500 10 500 Output 0 2 4 6 8 10 $ 50 150 250 TVC $0 200 340 590 1000 1650 (a) Complete the table below to show the total revenue and total profit of the firm at each level of output the firm might produce. Assume market prices of $50, $150, and $250. $ $ Market price = $50 Total revenue TC Profit (+) or loss (-) $ Market price = $150 Total revenue $ Profit (+) or loss (-) $ Market price = $250 Total revenue $ Profit (+) or loss (-) $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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