1. Answer the Following Questions Based on the Figure Below:

The figure above shows the cost curves of a profit-maximizing perfectly competitive firm. If the price equals $7

(1). How many units will the firm produce? Why(5 pts)

The firm will produce

(2). How much is the firm's average total cost, average variable cost, and marginal cost?(4 pts)

The firm's average total cost is , while the average variable cost is and marginal cost is

(3). How much is the firm's total variable cost, and total fixed cost?(4 pts)

The firm's total variable cost is and the total fixed cost is

(4). How much is the firm's total revenue and economic profit?(4 pts)

The firm's total revenue and economic profit is

(5). What will happen in this market in the long run? Will other firms enter or exit?(2 pt)

In this market in the long run other firms will

2.Answer the Questions Based on the Table Below:

(1). Using the data in the above table, what is the average fixed cost of producing 16 units?

(2 pts)

The average fixed cost of producing 16 units is

(2). Using the data in the above table, when the firm increases its output from 4 to 9 units, what is the marginal cost of a unit?(2 pts)

(3). Using the data in the above table, what is the marginal product of the 3rd worker?(2 pts)

The marginal product of the 3rd worker is