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1) For the following firm in a competitive market,
COST Revenue
Quantity Produced Total Cost Marginal Cost Qty Demanded Price Total Revenue Marginal Revenue
0 $0 --- 0 $100
1 $50 1 $100
2 $102 2 $100
3 $157 3 $100
4 $217 4 $100
5 $285 5 $100
6 $365 6 $100
7 $465 7 $100
8 $585 8 $100
a) Fill the column for marginal cost, total revenue and marginal revenue
b) What is interesting about the numbers you find for marginal revenue.
c) Based on profit maximization rule that you learned in Chapter 14 for competitive firms, what is the profit maximizing output? Explain how you found your answer.
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