In the accompanying table, you are given information about two firms that compete in a price-taker market. Assume that fixed costs for each firm are $20.

a. Complete the table. 

b. What is the lowest price at which firm A will produce? 

c. How many units of output will it produce at that price? (Assume that it cannot produce fractional units.) 

d. What is the lowest price at which firm B will produce? 

e. How many units of output will it produce? 

f. How many units will firm A produce if the market price is $20?

g. How many units will firm B produce at the $20 price? (Assume that it cannot produce fractional units.) 

h. If each firm’s total fixed costs are $20 and the price of output is $20, which firm would earn a higher net profit or incur a smaller loss? 

i. How much would that net profit or loss be?  

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QUANTITY 1 2 3 4 5 6 7 FIRM A TOTAL VARIABLE COST $24 30 38 48 62 82 110 MARGINAL COST ||||||| AVERAGE VARIABLE COST ||||||| QUANTITY 1 1967 WN. 2 3 4 FIRM B TOTAL VARIABLE COST $8 10 16 24 36 56 86 MARGINAL COST TITETTI AVERAGE VARIABLE COST |||||||