Consider the Following Table of Numbers, Which Represents Demand and Cost

question 24

Essay

Consider the following table of numbers, which represents demand and cost conditions for a competitive firm.
(a) Fill in the missing values.
(b) What level of output should the firm produce? Explain. $$\begin{array} { c c c c c c c c c c c } & & & & & & & & && \text { Total } \\\text { P=MR } & \text { Q } & \text { TFC } & \text { AFC } & \text { TVC } & \text { AVC } & \text { TC } & \text { ATC } & \text { MC } & \text { TR } & \text { Profit } \\600 & 0 & & - & 0 & - & 570 & - & & & \\600 & 1 & & 570 & 240 & & & & & & \\600 & 2 & & & 430 & & & & & & \\600 & 3 & & & 670 & & & & & & \\600 & 4 & & & 960 & & & & & & \\600 & 5 & & & 1,350 & & & & & & \\600 & 6 & & & 1,840 & & & & & & \\600 & 7 & & & 2,430 & & & & & & \\600 & 8 & & & 3,120 & & & & & & \\600 & 9 & & & 3,910 & & & & & & \\600 & 10 & & & 4,800 & & & & & &\end{array}$$

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Definitions:

Unrealized Loss-Income

Gains or losses that have occurred on paper but are not yet realized through a transaction.

Fair Value Adjustment

Fair Value Adjustment refers to an accounting action that adjusts the reported value of an asset or liability to reflect its current market value.

Trading Securities Portfolio

A collection of securities bought and held primarily for sale in the short term to generate income on short-term price differences.

Fair Value

The estimated price at which an asset can be bought or sold in an orderly transaction between market participants at the valuation date.