5. The following data is for Icarus Enterprises, Inc., a producer of wax

a. After analyzing the data below you can state that this firm is in a(n)

[ (choose one) purely competitive / imperfectly competitive ] industry.

Must explain and show in the table below how you arrived at your answer.

Price Output Total revenue Total cost Total profit

1 $ 5 $ 2

2 10 4

3 15 6

4 20 12

5 25 18

b. In the short run, the firm should produce __________ units of output to maximize profit.

Must explain and show in the table above how you arrived at your answer.