The table below contains information about the production, costs and profits of a firm.
The table below contains information about the production, costs and profits of a firm.
The price faced by the firm is $40 per unit.
There are 50 empty cells in the table.
(a) Fill in all the empty cells.
| Output | Total Fixed Costs | Total Variable Costs | Marginal Costs | Average Variable Costs | Average Fixed Costs | Average Total Costs | Price per unit | Profits |
| 0 | 12 | |||||||
| 1 | 12 | 50 | 50.0 | 50.0 | -22.0 | |||
| 2 | 12 | 75 | 25.0 | 37.5 | 43.5 | |||
| 3 | 10.0 | 28.3 | ||||||
| 4 | 20.0 | 26.3 | ||||||
| 5 | 133 | 28.0 | 26.6 | |||||
| 6 | 160 | 26.7 | ||||||
| 7 | 198 | 28.3 | ||||||
| 8 | 12 | 270 | 72.0 | 38.0 | ||||
| 9 | 12 | 320 | 50.0 | |||||
| 10 | 12 | 400 | 40.0 | 1.2 | 41.2 |
(b) Identify the output level at which profits are maximized. Show that this confirms the profit maximizing rule for the perfectly competitive firm.
