Part 1

Assume that a firm in a perfectly competitive industry faces a prevailing market price of $50 and has the following total cost schedule:

Quantity	TC	TR	Profit/Loss	MC	MR
0	40
20	800
400	1,100
60	2,000
80	3,000
100	4,500
120	7,000
130	10,000
140	15,000

1. Complete the schedule above^^^^
2. How much should this firm produce in order to maximize profit and how much would its profit be ? Explain using the concepts of MR and MC ?
3. Is the firm in an long run or short run equilibrium ? Explain
4. Given the circumstance in question 3c) if new firms were attached to this market what would be the main consequence for this competitive firm in terms of prices received; quantity produced and profit ?