1. Fill out the schedule above.

2. Given the price information you've received, how many computers/day will the firm produce? What will be the economic profit (or loss) this firm receives?

3. If the firm is making a positive profit, do you expect it to persist in the long run? Why?

4. What is the lowest possible price the firm would be willing to sell for in the short run?

5. What is the lowest possible price the firm would be willing to sell for in the long run?

Use the cost schedule below to answer the following questions about a pricetaking rm who produces discrete units (there cannot be a halfcomputer in this world). ATC is average total cost, AVG is average variable cost and AFC is average xed cost. Computers per Day Fixed Cost Variable Cost Total Cost Marginal Cost ATC AVG AFC Price 0 $30 $0 - - - - $35 1 $30 $20 2 $30 $30 3 $30 $40 4 $30 $60 5 $30 $90 6 $30 $130 7 $30 $180 8 $30 $240 9 $30 $310 10 $30 $390