1. A competitive firm can sell its product for a price of $3 in the market. Total costs are given below. Fill in the following columns in the table; price, total revenue, marginal revenue, marginal costs, variable costs, fixed costs, profit and average total cost.
2. A music studio faces the following demand schedule when releasing the next compact disc by Taylor swift. The studio must pay swift $30 million to make the CD and the marginal cost of producing the CD is a constant $2 per disc. Calculate the total revenue, marginal revenue, fixed cost, marginal cost, variable cost, total cost and profit for each quantity listed.