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

question 30

Essay

Consider the following table of numbers, which represents demand and cost conditions for a competitive firm. The price of the product this firm produces is $50. $$\begin{array} { | c | c | c | c | c | c | c | c | } \hline \text { Q } & \text { TFC } & \text { MC } & \text { TVC } & \text { TC } & \text { TR } & \text { MR } & \text { Total Profit } \\\hline 0 & 30 & 0 & & & & & \\\hline 1 & & 20 & & & & & \\\hline 2 & & 30 & & & & & \\\hline 3 & & 40 & & & & & \\\hline 4 & & 50 & & & & & \\\hline 5 & & 60 & & & & & \\\hline 6 & & 70 & & & & & \\\hline\end{array}$$ (a) Fill in the missing values.
(b) What level of output should the firm produces? Why?
(c) What do you predict will happen to the number of firms in the industry? Why?
(d) What do you predict will happen to supply and the market price?
(e) At which price must the firm shut down?

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Definitions:

WTO

The World Trade Organization, an international body that deals with the rules of trade between nations.

Environmental Standards

Regulatory benchmarks established to limit pollution and protect ecosystems by controlling the emissions of harmful substances and ensuring sustainable practices.

Environmentalists

Environmentalists are people or groups who are concerned with protecting the environment from pollution and destruction and advocate for sustainable and eco-friendly practices.

Sweatshops

Workplaces, often in the clothing industry, with very poor, socially unacceptable working conditions, frequently involving the exploitation of workers.