Question

A perfectly competitive firm has leased plants and equipment to produce video game cartridges, which can be sold in unlimited quantities at $21 each. The following describe the associated costs of production:

Rate of output / day	0	1	2	3	4	5	6	7	8
Total Cost / day	$50	$55	$62	$75	$96	$125	$162	$203	$248

(a) How much are fixed costs?

Instructions: Enter your responses as a whole number.

$

(b) Compute total revenue for the table below.

Rate of output / day	0	1	2	3	4	5	6	7	8
Total Revenue	$	$	$	$	$	$	$	$	$

(c) Compute the average total cost (ATC), marginal cost (MC) and demand curve values for the firm below.

Rate of output / day	0	1	2	3	4	5	6	7	8
Total Cost / day	$50	$55	$62	$75	$96	$125	$162	$203	$248
Average Total Cost	---	$	$	$	$	$	$	$	$
Marginal Cost	---	$	$	$	$	$	$	$	$
Demand Curve	$	$	$	$	$	$	$	$	$

(d) What is the profit-maximizing rate of output?

units

(f) What is the size of the loss if production continues?

Instructions: Enter your response as a whole positive number.

$ loss

(g) How much is lost if the firm shuts down?

Instructions: Enter your response as a whole positive number.

$ loss