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

question 148

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:

Tax Statement

A document that outlines the amount of tax owed to or refunded by the government for a particular financial year.

Form W-2

A tax form used in the United States that reports an employee's annual wages and the amount of taxes withheld from their paycheck.

Merit Rating

A system used to evaluate the performance, abilities, and skills of employees or organizations, often influencing rewards, promotions, or premiums.

FICA Tax

A United States federal payroll tax that funds Social Security and Medicare, contributions are made by both employees and employers.