Assume that a perfectly competitive firm has the schedule of average and marginal costs given in the table below.

OutputAFCAVCATCMC01$600$200$800$200230015045010032001403401204150145295160512016028022061001802802807862062913608752383134609302763425801060320380720

(a) For every possible price in the table below, answer what the quantity supplied will be and calculate the economic profit or loss. Show your calculations.

PriceQuantity

suppliedProfit (+) or loss (-)$580460360280220160120

(b) Why does a perfectly competitive firm not charge a price above the market price? Why does it not charge a price below the market price? Explain.