1. Perfectly competitive firm. Fill in the table and answer the following questions. (10pts)
Output
Fixed Cost FC
Variable Cost VC
Total Cost
Marginal
TC
Cost MC
Average Variable
Cost AVC
0
70
1
75
2
85
3
100
4
125
5
155
6
190
a. What is the lowest price this firm would sell this product for?
b. If the price in the market was 15, how many units would the firm produce? How much
would their profit be?