Question 1 The data below refer to a perfectly competitive firm. Fixed costs are $55. The current market price is $45. This same data is used for the next few questions. I would recommend that complete the chart in your notebook, draw the graphs for TR and TC as well as Economic profit as shown in Powerpoint Notes: Profit Maximization, and then answer the questions. Output Price TR (Q) (P) (PxQ) 1 12 3 4 5 6 7 8 MR AR (TR/Q) Table TC FC 45 VC MC ATC AVC Profit 65 70 80 95 120 1 pts 155 200

The data below refer to a perfectly competitive firm. Fixed costs are $55. The current market price is $45. This same data is used for the next few questions. I would recommend that complete the chart in your notebook. draw the graphs for TR and TC as well as Economic profit as shown in Powerpoint Notes: Profit Maximization, and then answer the questions. Profit is maximized for quantity level (Enter numbers only; if there are two levels of quantity for which profit is maximum, pick the higher quantity) 6 9 8 7 Question 3 1 pts For the output level that maximizes profit, what is the Marginal Revenue (MR)? For the output level that maximizes profit, what is the Marginal Cost (MC)? (Enter numbers only) 55 25 45 35 Question 5 1pts What is the Price at that level of output of profit maximization? Therefore, when profits are maximized, which three things are equal? (Enter numbers only) P=MC=MRP=MR=AVCMC=MR=AVCP=AVC=MC Question 7 2 pts In a graph space provided here , or in any other sheet of paper, draw TR, TC, TVC, TFC on the y-axis, and quantity on the x-axis. Mark the paximum profit, the overall area where the firm is making a profit and where its making loss. Refer to the PowerPoint notes. Upload a scanned copy here