Questions1. What rule do you use to determine the quantity (qmax.profits) that will maximize profits? Write out the rule here. ________________________________________________________ What is the Profit maximizing quantity the firm will produce? __________2. What is the Profit the firm earns at the quantity you gave in Q. 1? __________3. What is the highest profit the firm can earn? ___________4. How do you know that this is a perfectly competitive firm? Explain ______________________________________________________________________5. Fill in the Blank. If the firm's price is below Average Total Cost but above _________________ (AVC/AFC) the firm will continue to produce at a ____________(profit/ loss).6. Watch the video to draw the curves for Demand Curve, Marginal Revenue Curve & Marginal Cost curve on the graph. Mark the quantity the firm will produce and the price. Label every curve and axis.

6 8 10 12 14 16 18 20 122 24 26 28 30 32 134 36 38 40 42 Chapter 9 Perfect Competition Firm Fill columns (3) & (5) Total (2) (5) Total Marginal Product Marginal Total Revenue Revenue Cost Cost 0 0 100 131 190 2 262 270 3 393 340 524 400 5 655 470 6 786 550 917 640 8 1048 750 1179 880 10 1310 1030 Questions What rule do you use to determine the quantity (qmax profit) that will maximize profits? Write out the rule here. What is the Profit maximizing quantity the firm will produce? 2. What is the Profit the firm earns at the quantity you gave in Q 17 3. What is the highest profit the firm can earn? 4. How do you know that this is a perfectly competitive firm? Explain 5. Fill in the Blank. If the firm's price is below Average Total Cost but above (AVC/AFC) the firm will continue to produce at a (profit loss) 6. Watch the video to draw the curves for Demand Curve, Marginal Revenue Curve & Marginal Cost curve on the graph Mark the quantity the firm will produce and the price. Label every curve and axis