1. In what ways is the following business perfectly competitive? It was ways is it not?

Mary sets up her food truck specializing in Armenian food at a lot where there are many other food trucks. It cost her $3000 to set up this business. She learns from the other food trucks that their profits are much less than in the past.

2. George wants to set up a business on the internet. He paid a consultant $1000 to create good web pages and it is ready to go. Now he learns that the business may not be as profitable as he originally thought. He asks for your advice saying, "I've already put $1000 into the business, so I don't want to give up." What do you tell him based on your study of costs in this section of the course?

3. Help complete a table for Q, FC, VC, TC, MC, Price, TR and Profit using reasonable numbers for a perfectly competitive firm.

For price, use a number equal to the number of letters in your first and last name (maximum 20).

For Q use 0, 1, 2, 3, 4, 5, 6, 7, 8 For MC use $4, 5, 6, 8, 10, 13, 16, 20.

For FC, VC, TC and MC use reasonable numbers.

You may need to adjust them so that you will have a profit but make certain that FC, VC, TC and MC correspond to one another. TR and Profit will be calculated based on your selected price and costs.