With a new understanding of economic analysis, Corn Mart, wants your opinion on what to do. Currently they are producing 7 bushels of corn per day.

the corn market is very competitive in your city-therefore, it is perfect competition. The market price is $4. Fill in the blanks

All numbers are daily measurements

output Fixed Cost AFC Variable Cost AVC Total Cost ATC MC MR

1 10 1.20

2 3.00

3 4.00

4 6.50

5 9.00

6 12.00

7 15.50

8 19.50

9 26.00

10 33.00

a. Is producing 7 bushels of corn a good idea? Or, should they produce a different amount? If so, how many?

b. At the profit-maximizing point, how much accounting profit is being generated?

Question 2. Provide advice to a firm with monopolistic power. Fill in the blanks

Based on your findings, what is the output tht should be produced? Why?

Assuming this is a production schedule for a winter coat producer, what are some options that they have? What do you recommend?

Output Price TR TC Total Profit MR MC ATC VC AVC

0 200 300 X X X X X

1 190 600

2 180 680

3 170 750

4 160 810

5 150 860

6 140 920

7 130 990

8 120 1070

9 110 1150

10 100 1300