Perfect Competition:

Suppose Paulie's Pizza is in a town where pizza is considered a perfectly competitive market. Given how a firm behaves in this type of market answer the following question using the Paulies Pizza cost table (assume it is a daily cost table).

If the market price is $5, determine the daily profit/loss.

Q TC FC VC ATC AFC AVC MC 0 30 30 0 0 0 0 0 Cost 10 75 30 45 7.50 3 4.50 4.50 20 12.00 115 30 85 5.75 1.50 4.25 4.00 30 150 30 120 5.00 1.00 4.00 3.50 10.00 40 175 30 145 4.38 0.75 3.63 2.50 50 190 30 8.00 160 3.80 0.60 3.20 1.50 60 205 30 175 3.42 0.50 2.92 1.50 6.00 70 225 30 195 3.21 0.43 2.79 2.00 80 250 30 220 3.13 0.38 4.00 2.75 2.50 90 290 30 260 3.22 0.33 2.89 4.00 2.00 100 340 30 310 3.40 0.30 3.10 5.00 110 120 30 390 3.82 0.27 3.55 8.00 0.00 120 510 30 480 4.25 0.25 10 20 30 4.00 40 9.00 50 60 70 80 90 100 110 120 130 130 620 30 590 4.77 0.23 4.54 11.00 ATC AFC AVC -MC