Question

Complete a table for Q, FC, VC, TC, MC, MR, Price, TR & Profit using reasonable numbers for a perfectly competitive firm. For price, use a number equal to the number of letters in your first and last name (maximum 18). For Q use 0, 1, 2, 3, 4, 5, 6, 7, 8 For MC use $3, 4, 5, 7, 9, 13, 16, 21. Then make up #s for FC, VC, TC, & MR, but make certain they are corresponding to the numbers you already sued for MC & Price. Lastly, find & show the profit maximizing lvl of output showing that it's where MR=MC

Answer 1

Q	P $	Fixed cost $	Variable cost $	Total cost $	MC $	Total revenue ( P x Q)	Profit	MR $
0	15	20	0	20	-	0	-20	-
1	15	20	3	23	3	15	-8	15
2	15	20	7	27	4	30	3	15
3	15	20	12	32	5	45	13	15
4	15	20	19	39	7	60	21	15
5	15	20	28	48	9	75	27	15
6	15	20	41	61	13	90	29	15
7	15	20	57	77	16	105	28	15
8	15	20	78	98	21	120	22	15
Total cost = Fixed Cost + Variable costs
Fixed cost is the same for all quantity produced.
Variable costs varys with output.
Marginal cost is additional cost due to the production of one more unit.
(Change in total cost/Change in output).
Profit= Total revenue- total costs
MR=MC is when Q=6
This is the profit maximizing output.
For a competitive firm.