Question - The following table represents short run cost-revenue information (in dollars) for a firm in a competitive market.
|
Q
|
P
|
TR
|
MR
|
MC
|
TC
|
Total Profit
|
|
0
|
|
|
N/A
|
N/A
|
|
|
|
1
|
|
|
|
60
|
|
|
|
2
|
|
|
|
50
|
|
|
|
3
|
|
|
|
|
|
|
|
4
|
|
|
|
|
660
|
|
|
5
|
|
|
|
|
|
|
|
6
|
|
|
|
|
700
|
|
|
7
|
|
|
|
|
730
|
|
|
8
|
|
|
|
|
770
|
|
|
9
|
|
|
|
60
|
|
|
|
10
|
|
|
|
80
|
|
|
(a) Fill in all the blanks above using the following information: The Total Fixed Cost is $480. The Market Price is $50 per unit of output, the ATC of producing 3 units of output is $210, and the TVC of producing 5 units of output is $200
(b) Where does diminishing returns start? Explain your answer.
(c) In the Short Run, if this firm would go into production, determine the profit maximizing (or loss minimizing) level of output and profit amount.
(d) In the Short Run, if this firm would instead shutdown without going into production, determine its production amount and profit amount.
(e) Please determine the best course of action for this firm in the Short Run.
(f) Based on the data above, in the Long Run, explain what this firm should do.