Brody's firm produces trumpets in a perfectly competitive market. The table below shows Brody's total variable cost. He has a fixed cost of $240, and the price per trumpet is $60.

1. Calculate the average total cost of producing 6 trumpets. Show your work.
2. Calculate the marginal cost of producing the 11th trumpet.
3. What is Brody's profit-maximizing quantity? Use marginal analysis to explain your answer.
4. At the profit-maximizing quantity you determined in part (c), calculate Brody's profit or loss.Show your work.
5. Brody also produces saxophones at a loss in a perfectly competitive market. Draw a correctly labeled graph for Brody's firm showing the following at a market price of $200.
6. Brody's profit-maximizing quantity of saxophones
7. Brody's loss, completely shaded

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