1)The following table presents the fixed and variable costs for units of Z.

a.Fill in each column using the formulas as presented in class (you are permitted to use Excel, simply copy/paste back and forth). (5)

b.The firm is in a perfectly competitively industry.The price per unit is $80.How much should the firm produce, and what are short run profits? (4)

c.What is the minimum price where the firm would stay in business in the short run? (2)

If the firm is in a perfectly competitively industry, what will be the long run equilibrium price and firm profits.

Q MV F VC

0 100 200 0

1 90 200 60

2 80 200 80

3 70 200 84

4 60 200 90

5 50 200 100

6 40 200 120

7 30 200 150

8 20 200 200

9 10 200 280

10 0 200 380