1. Show how you know this firm is operating in a perfectly competitive market. (5)
2. Determine the firm's profit-maximizing output (to the nearest 100 kg) using both the TR-TC and MR-MC methods. (Be sure to show your calculations, not just the answers) (10)
3. Now solve the profit-maximizing output problem graphically using both methods. (10)

1. Profit-Maximization Table for a Market Gardener P ($ pet Q (kg per TR ($) TC ($) MR ($ MC ($ AC ($ Profit/Loss kg) mouth perbe) per kg) per kg) ($) 0 $0 $18 -$18 $0.48 $0.23 $0.48 100 $48 $41 $0.41 $7.00 $0.48 $0.08 $0.48 200 $96 $57 $0.285 $39 $0.48 $0.067 $0.48 300 $144 $77 $0.2567 $67 $0.48 $0.0725 $0.48 400 $192 $106 $0.265 $86 $0.48 $0.078 $0.48 500 $240 $145 $0.29 $95 $0.48 $0.09 $0.48 600 $288 $199 $0.332 $89 $0.48 $0.136 $0.48 700 $336 $294 $0.42 $42 $0.48 $0.259 $0.48 800 $384 $501 $0.626 -$117