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Suppose that a purely competitive firm has the production co

Paper help Economics Suppose that a purely competitive firm has the production co

Economics

Suppose that a purely competitive firm has the production co

Suppose that a purely competitive firm has the production costs reported in the table below. Fill o… Show more Suppose that a purely competitive firm has the production costs reported in the table below. Fill out the rest of the table and answer the following questions regarding the output produced, profits, and losses in the short-run. Output TVC TC AFC AVC ATC MC 0 0 100 – – – – 1 100 2 180 3 240 4 320 5 440 6 600 7 800 8 1040 Suppose that the competitive market price is $165. How many units of output should the individual competitive firm produce to maximize profits (or minimize losses) in the short-run? Explain carefully the economic rationale behind this figure. In this first state of the world, the unit profit (or loss) equals ____, and the total profit (or loss) equals ____. Show the math. Suppose that the competitive market price falls $90. How many units of output should the individual competitive firm produce to maximize profits (or minimize losses) in the short-run? Explain carefully the economic rationale behind this figure. In this second state of the world, the unit profit (or loss) equals ____, and the total profit (or loss) equals ____. Show the math. Suppose that the competitive market price falls further to $75. How many units of output should the individual competitive firm produce to maximize profits (or minimize losses) in the short-run? Explain carefully the economic rationale behind this figure. In this third state of the world, the total profit (or loss) equals ____. • Show less

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