Reference no: EM133714221

Question: Identify the 4 criteria for the existence of perfect competition. Explain the meaning behind the economic term 'price taker'. Explain why in perfect competition marginal revenue must equal price. If fixed costs are $100 and variable costs are $200 at an output level of 30 units, what are the average fixed costs, average variable costs, and average total costs? Quantity Fixed Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost 10 5,000 5,500 20 5,000 5,800 30 5,000 6,000 40 5,000 6,100 50 5,000 6,150 60 5,000 6,175 In the table above, fill in the empty cells with the correct answers. You may just copy this table into a 'Word' document and fill in the cells there and attach the document to your completed homework assignment. Explain why to maximize profits a firm needs to produce an output at a level where marginal revenue = marginal costs. Why not produce a lesser quantity Explain why a firm should not produce an output at a level where marginal cost is greater than marginal revenue. How does competition among online music retailers influence economic profit?

Suppose that the restaurant industry is perfectly competitive. Joe's Diner is always