2.A perfectly competitive firm has the following fixed and variable costs in the short-run. The market price for the firm's product is $140.

OutputFCVCTCTRProfit/Loss

0$80$0_________

18090_________

280170_________

380290_________

480430_________

580590_________

680770_________

a.Complete the table.

b.What level of output should the firm produce to maximize profits?

c.Assume this firm is making a loss when it produces its 7^th unit of output. What should the firm do in the short-run? Should it operate at loss or shutdown in the short-run?