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Assume that Harry Ellis produces table lamps in the perfectly competitive table lamp market. Output Total costs Average fixed cost Average variable cost Average total

Assume that Harry Ellis produces table lamps in the perfectly competitive table lamp market.

Output

Total costs

Average fixed cost

Average variable cost

Average total cost

Marginal cost

0

100

1

150

2

175

3

190

4

210

5

240

6

280

7

330

8

390

9

460

10

540

  1. Fill in the missing values in the table.
  2. Suppose the equilibrium price in the market is $50. How many table lamps should Harry produce, and how much profit will he make?
  3. If next week the equilibrium price of table lamps drops to $30, should Harry shut down? Explain.

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