ECON 201

Assignment 8.2

Cost and output data for a pure competitive firm are given below. Assume that the market price facing the firm is $30 per unit. Answer all the questions.

Q= Output	Total Cost $
000	30
1	70
2	95
3	115
4	130
5	150
6	175
7	205
8	240
9	285
10	340

1. What is the AFC for the 7^th unit?

2. What is the AVC for the 5^th unit?

3. What is the ATC for the 10^th unit?

4. What is the MC for the 3^rd unit? The 7^th unit?

5. What is the profit maximizing rate of output? And how much is the profit?

6. At what price will this firm close its doors?