Consider a perfectly competitive market for coffee beans. The cost structure of a typical firm producing bags of coffee beans in the market is presented below. (10 Marks)

a) Complete the table below. (4 Marks)

Quantity Fixed Cost Variable Cost TC ATC AVC AFC MC

0

1. 100. 350

2. 300

3. 370

4 550

5 650

6 850

Suppose that the current price of a bag of coffee beans is $150, answer the following:

b) Is it advisable for a new firm to enter the market? Why or why not? (2 Marks)

c) What will be the long-run competitive equilibrium price for a bag of coffee beans? (2

Marks)

d) Could a firm in the industry earn a profit at this long-run price? (2 Marks)

I don't want this necessarily answered I would just like a guide on how to go about it or answers to similar questions