1) If you assume a grape firm is earning / receiving positive economic profit, which of the following options would essentially describe the minimum point of the average total cost curve for a perfectly competitive firm? Choose the best answer.

a) Upon the point at which MC = MR [marginal cost equals marginal revenue].

b) Upon the point at which demand changes from elastic to inelastic range.

c) The intersection of the ATC [average total cost] curve and the MC [marginal cost] curve.

d) The profit-maximizing point of the production.

e) The intersection of the ATC [average total cost] curve and the AVC [average variable cost] curve.

f) All the above

g) None of the above.

2) View and revise the attached cost schedule for a firm.

For a perfectly competitive mango firm, what would be the economic loss or profit for it if the market price equals $16?

\f\f