Consider a firm facing the following cost structure:such that the Marginal Cost is given by:.Suppose the firm is in a perfectly competitive market.

Q2. TECHNICAL QUESTION. Consider a firm facing the following cost structure: TC = 50 + 100 + SQ2 such that the Marginal Cost is given by: MC = 10 + 100. Suppose the firm is in a perfectly competitive market. - . , 1 AFC AVC ATC MC" P TR TC Profits I; 7 7 *Note. MC computed using MC equation (a]. Complete the AFC, AVC, ATC and MC columns in the table [2 marks] I (b). For the price levels given (P) in the table, compute the TR, TC and Profits/losses the firm would make at each of these prices [1.5 marks] (c). Does this firm face m marginal returns? Yes or No? Briefly explain [1.5 marks] (:1). If the price falls to 30, should the firm shut down? Yes or No? Briefly explain [2 marks] (e). If the price persistently remained at 30, should the rm exit the market? Yes or No? Briey explain [2 marks]