1. Suppose that a firm in a competitive market faces the following costs: Quantity Total Cost Marginal Cost Avg Variable

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1 Suppose That A Firm In A Competitive Market Faces The Following Costs Quantity Total Cost Marginal Cost Avg Variable 1 (121.87 KiB) Viewed 81 times

1. Suppose that a firm in a competitive market faces the following costs: Quantity Total Cost Marginal Cost Avg Variable Cost Avg Total Cost 0 $3 1 $5 2 $8 3 $12 4 $17 5 $23 6 $30 7 $38 a. What are this firm's fixed costs? b. Fill in the blanks in the table. c. Fill in the highest quantity the firm should produce to maximize profits if the price the firm can sell the product at is: $3 $4 $5 d. At which of the prices in part c will the firm make a profit? e. Suppose the government passes regulations that increase the firm's fixed costs to $8. What is the lowest price at which this firm will be able to stay in business? Explain.