Consider total cost and total revenue given in the table below:

Quantity 0 1 2 3 4 5 6 7 Total cost €8 19 110 111 113 119 127 137 Total revenue €0 8 16 24 32 40 48 56

a. Calculate profit for each quantity. How much should the firm produce to maximize profit?

b. Calculate marginal revenue and marginal cost for each quantity. Graph them. (Hint: put the points between whole numbers. For example, the marginal cost between 2 and 3 should be graphed at 21 2.) At what quantity do these curves cross? How does this relate to your answer to part (a)?

c. Can you tell whether this firm is in a competitive industry? If so, can you tell whether the industry is in long-run equilibrium?