Assume the table below is extracted from Dodi company Ltd a perfectly competitive firm selling cabbages. Assume that when the firm’s selling price is AUD 15, the marginal revenue is also AUD15. Complete the table below and answer the questions that follow. Quantity (Kg) AVCAFCATCMC2.507.505.10 3.509.003.00 9.004.5010.002.50 12.505.5014.001.80 13.006.0018.001.67 15.0010.0025.001.43 16.00Qty = Quantity; AVC=Average variable cost; AFC = Average fixed cost; ATC=Average Total Cost; MC= Marginal Cost; Rev = Revenue; MR= Marginal Revenue; Kg = Kilogram Based on your answers to the table above, identify the profit maximizing quantiy supplied by the firm. Calculate the amount of profit/loss at this optimal point. Show your work.

Perfect competition is a market type in which large number of buyer and sellers are there and…

Answered: Assume the table below is extracted…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 10PA

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Assume the table below is extracted from Dodi company Ltd a perfectly competitive firm selling cabbages. Assume that when the firm’s selling price is AUD 15, the marginal revenue is also AUD15.

Complete the table below and answer the questions that follow.

Quantity (Kg)	AVC	AFC	ATC	MC
2.50	7.50	5.10
3.50	9.00	3.00		9.00
4.50	10.00	2.50		12.50
5.50	14.00	1.80		13.00
6.00	18.00	1.67		15.00
10.00	25.00	1.43		16.00

Qty = Quantity; AVC=Average variable cost; AFC = Average fixed cost; ATC=Average Total Cost; MC= Marginal Cost; Rev = Revenue; MR= Marginal Revenue; Kg = Kilogram

Based on your answers to the table above, identify the profit maximizing quantiy supplied by the firm. Calculate the amount of profit/loss at this optimal point. Show your work.

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