Question

Fill in the table for a perfectly competitive firm.

Output	VC	TC	AVC	AFC	ATC	MC	P	TR	PROFIT
0		100	---	---	---	---	50
1	25							50
2						20
3					53.3
4			17.5
5	90
6						30
7		265
8					41.3
9			35
10	425

A perfectly competitive firm’s demand curve is perfectly elastic.

Answer 1

Output	VC	TC	FC	AVC	AFC	ATC	MC	P	TR	PROFIT
0		100	100	---	---	---	---	50	0
1	25	125	100	25	100	125	25	50	50	-75
2	45	145	100	22.5	50	72.5	20	50	100	-45
3	59.9	160	100	19.9666667	33.3333333	53.3	15	50	150	-9.9
4	70	170	100	17.5	25	53.3	10	50	200	30
5	90	190	100	18	20	42.5	20	50	250	60
6	120	220	100	20	16.6666667	38	30	50	300	80
7	165	265	100	23.5714286	14.2857143	36.6666667	45	50	350	85
8	230	330	100	28.8	12.5	41.3	65	50	400	69.6
9	315	415	100	35	11.1111111	46.1111111	85	50	450	35
10	425	525	100	42.5	10	52.5	110	50	500	-25

TC=TFC+TVC

TFC=TC when Q=0

TVC=TC-TFC

TR=PQ

MC=TCn-TCn-1

AVC=TVC/Q

AFC=TFC/Q

ATC=TC/Q

PROFIT=TR-TC