1. The following table contains information for a price taking competitive firm. Complete the table and determine the profit maximizing level of output (round your answer to the nearest whole number).

Total MarginalFixedAverage Total Average Marginal

Output Cost Cost Cost Cost Revenue Revenue Revenue

0 5 0

1 7 10

2 11 20

3 17 30

4 27 40

5 41 50

6 61 60

2. Conigan Box Company produces cardboard boxes that are sold in bundles of 1000 boxes. The market is highly competitive, with boxes currently selling for $100 per thousand.Conigan's total and marginal cost curves are:

TC = 3,000,000 + 0.001Q2

MC = 0.002Q

where Q is measured in thousand box bundles per year.

a. Calculate Conigan's profit maximizing quantity. Is the firm earning a profit?

b. Analyze Conigan's position in terms of the shutdown condition. Should Conigan operate or shut down in the short run?