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Short run costs for a perfectly competitive firm. Consider a firm with the following Fixed Costs and Variable Costs, calculate MC, MR, AFC, AVC, ATC and Profits (12). TR TFC TVC TC MCMAFC AVGATO pod. 0,00 15.00 1.60 TO 15.00 3.00 18.00 2.00 20 15.00 5.00 20.00 3.000 15.00 6.00 21.00 400 00 15.00.00 23.00 3.00 50 15.00 13.00 2.00 ROC 15.0923.00 700 70 15.00 56.00 51.00 8.OG 80 S56.0071,00 e. Explain when the firm would breakeven? Why? (2) f. At what output would the firm operate in the long run and why? (3)
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PATI A
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Here is a detailed analysis of the short-run costs for the perfectly competitive firm: Short-Run Costs The firm has the following fixed costs (FC) and variable costs (VC) in the short run: Output (q) TFC TVC TC MC AFC AVC ATC 0 15 0 15 - - - - 10 15 16 31 1.6 1.5 1.6 3.1 20 15 50 65 3.4 0.75 2.5 3.25 30 15 90 105 4 0.5 3 3.5 40 15 150 165 6 0.375 3.75 4.125 50 15 230 245 8 0.3 4.6 4.9 60 15 350 365 12 0.25 5.83 6.08 70 15 490 505 14...
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