1. Suppose a purely competitive firm faces a price of $12. At that price, MR = MC at 200 units of output. Fixed costs are $500 and at 200 units of output Average Total Cost is $10.
   1. Draw a graph with the firm's MR, MC, ATC, and AVC.
   2. Calculate total revenue.
   3. Calculate Average Fixed Cost.
   4. Calculate Average Variable Cost.
   5. Suppose ATC at 200 units of output is $12 (instead of $10). How much is the profit/loss?
   6. Shade in the profit/loss at a price of $12 and mark it on your graph.
   7. Suppose ATC at 200 units of output is $16. How much is the profit/loss?