1. Below is a cost and revenue table for a perfectly competitive firm producing socks.Fill in the missing information assuming that market price is $24.

QFCTCMCATCMRTRProfit

0105105N/AN/A240-105

1105135301352424-111

210516025802448-112

310518020602472-108

41051951548.752496-99

5105215204324120-95

61052503541.6724144-106

71052954542.1424168-127

81053556044.37524192-163

2. What is the profit maximizing (or loss-minimizing) level of output for this firm? (Assume there are no fractional levels of output - the firm can produce two socks or three socks, but not 2.5 or 3.75 socks)

3. We usually say that the competitive firm maximizes profits by choosing the output level that makes MC=MR - but that isn't exactly true here at the optimal level of sock output. Why not?

4. What is the break-even price for this firm?