A firm has the following relationship between output (Q) and total cost (TC):

Q TC

0 $100

1 110

2 130

3 160

4 200

5 250

6 310

7 380

8 460

9 550

10 650

a.Say the firm is a perfect competitor. If the market price for its product is $ 60, at what output level will this firm produce at (as a profit maximizer)?

b.At the output level in (a), are firms in this industry making a profit or loss? Will firms enter or exit the market?

c.Say this firm is a monopoly. If the firm maximizes profit where marginal revenue equals $ 40, at what output level will the firm be producing at (as a profit maximizer)?