Question

1. Complete the table given showing the costs of a perfectly competitive firm.

Output	Total Cost	Total Fixed Cost	Total Variable Cost	Average Fixed Cost	Average Variable Cost	Average Total Cost	Marginal cost
100	360		160
200							0.3
300					0.83
400						1.30
500			460
600							3
700					1.6
800	2240

2. If the market price is Rs 3,what will be the profit/ loss of the firm?

Answer 1

Q1 & 2 Pls see completed table as well as the formulae used

Q	A	B = A-C, then constant	C	D = B/Q	E = C/Q	F = A/Q	G = (Total Cost for Q - Total Cost for Q-1) / (Q - Q-1)	H = 3*Q	I = H-A
Output	Total Cost	Total Fixed Cost	Total Variable Cost	Average Fixed Cost	Average Variable Cost	Average Total Cost	Marginal Cost	Revenue	Profit
100	360	200	160	2.00	1.60	3.60		300	-60
200	390	200	190	1.00	0.95	1.95	0.30	600	210
300	450	200	250	0.67	0.83	1.50	0.60	900	450
400	520	200	320	0.50	0.80	1.30	0.70	1200	680
500	660	200	460	0.40	0.92	1.32	1.40	1500	840
600	960	200	760	0.33	1.27	1.60	3.00	1800	840
700	1320	200	1120	0.29	1.60	1.89	3.60	2100	780
800	2240	200	2040	0.25	2.55	2.80	9.20	2400	160