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.
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