1. Fill in the following table if the market price is $140 and the firm is operating within perfect (or pure) competition:
|
Total Output (Q)
|
TFC
|
TVC
|
TC = TFC + TVC
|
MC
|
Total Revenue = (P x Q)
|
MR = Change in TR
|
Profit =
TR - TC
|
|
0
|
100
|
0
|
|
N/A
|
0
|
N/A
|
|
|
1
|
|
120
|
|
120
|
140
|
140
|
|
|
2
|
|
200
|
|
|
|
|
|
|
3
|
|
290
|
|
|
|
|
|
|
4
|
|
440
|
|
|
|
|
|
|
5
|
|
600
|
|
|
|
|
|
2. Based on the data from #1, what is the quantity that this perfectly competitive firm will produce? Name the method you used to determine the answer.
3. Provide an example of a perfectly competitive industry? What characteristics does it have which support your conclusion?