Provide an example of a perfectly competitive industry

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1. Fill in the following table if the market price is $140 and the firm is operating within perfect (or pure) competition:

Total Output (Q)

TFC

TVC

TC = TFC + TVC

MC

Total Revenue = (P x Q)

MR = Change in TR

Profit =
TR - TC

0

100

0


N/A

0

N/A


1


120


120

140

140


2


200






3


290






4


440






5


600






2. Based on the data from #1, what is the quantity that this perfectly competitive firm will produce? Name the method you used to determine the answer.

3. Provide an example of a perfectly competitive industry? What characteristics does it have which support your conclusion?

Reference no: EM131575840

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