Assume a company has the following short run production function:

consider profit as total revenue (TR) minus total cost (TC). Also consider that the company's capital is fixed at 2 units, where the cost of capital is $30 per unit per period and the cost of labor (or wage rate) is $15 per unit of labor per period.:

	Capital
Labor	0	1	2
0	0	0	0
1	0	1	3
2	0	3	12
3	0	7	30
4	0	12	60
5	0	18	85
6	0	21	105
7	0	23	120
8	0	24	130
9	0	24	135

Consider thatcompany is perfectly competitive and that it can sell each unit of the output that it produces for $1.50 , where the price (P) is also the marginal revenue (MR).

(a) Set up a diagram (excel) to show total cost (TC) and total Revenue (TR) of the company per period in the short run with the level of output on the horizontal axis.

(b) Also, set up another diagram (excel) showing the firm's short-run marginal cost (MC) and marginal revenue (MR) with quantities on the horizontal axis.

(c) What is the nature of profit maximization for perfectly competitive companies.