A market at equilibrium shown by the intersection of S1 and D1 at a price of P1 = $3 and at a market quantity of Q1 = 20,000. Assume also that there are 50 firms operating initially in this market. Assume that the diagram of the competitive firm above is representative of each individual firm in this market (each firm has a total fixed cost of $100)

show calculations of:

1) what are MR and AR

2) The quantity produced by each firm is_____________

3) Total revenue received by each firm is__________

4) Average total cost for each firm is_______________

5) Total cost of production for each firm is__________

6) Average fixed cost for each firm is_______________

7) Average variable cost for each firm is____________

8) Economic profit for each firm is __________

Market Competitive firm Price $ Price, cost $ S1 MC S2 ATC AVC P2 P2 P1 D1=AR1=MR1 P1 D2 D1 0 0 Q1 Q2 Q3 91 92 Quantity quantity