1. Assume that a firm in a competitive market faces the following cost information. If the market price for this firm's product is $40, calculate the profit maximizing level of output for this firm using marginal analysis. It may help to create your own cost table and fill in columns for Marginal Cost and Average Total Cost based on the Total Cost information below.

Quantity Average Total Marginal of Total Cost Cost Output Cost $100 $120 $20 $120 $135 $15 $67.50 $145 $10 $48.33 $160 $15 $40 $180 $20 $36 $205 $25 $34.17 $240 $35 $34.28 $285 $45 $35.68 $350 $65 $38.89 10 $440 $90 $44