Suppose Paulie's Pizza is in a town where pizza is considered a perfectly competitive market. Given how a firm behaves in this type of market answer the following question using the Paulies Pizza cost table (assume it is a daily cost table).

If the market price is $5, determine the daily profit/loss.

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Q 0 10 20 30 40 50 60 70 80 90 100 110 120 130 TC 30 75 115 150 175 190 205 225 250 290 340 420 510 620 FC 30 30 30 30 30 30 30 30 30 30 30 30 30 30 VC 0 45 85 120 145 160 175 195 220 260 310 390 480 590 ATC 0 7.50 5.75 5.00 4.38 3.80 3.42 3.21 3.13 3.22 3.40 3.82 4.25 4.77 AFC 0 3 1.50 1.00 0.75 0.60 0.50 0.43 0.38 0.33 0.30 0.27 0.25 0.23 AVC 0 4.50 4.25 4.00 3.63 3.20 2.92 2.79 2.75 2.89 3.10 3.55 4.00 4.54 MC 0 4.50 4.00 3.50 2.50 1.50 1.50 2.00 2.50 4.00 5.00 8.00 9.00 11.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 10 20 30 Cost 40 50 60 70 80 90 100 110 120 130 -ATC -AFC -AVC-MC Q 0 10 20 30 40 50 60 70 80 90 100 110 120 130 TC 30 75 115 150 175 190 205 225 250 290 340 420 510 620 FC 30 30 30 30 30 30 30 30 30 30 30 30 30 30 VC 0 45 85 120 145 160 175 195 220 260 310 390 480 590 ATC 0 7.50 5.75 5.00 4.38 3.80 3.42 3.21 3.13 3.22 3.40 3.82 4.25 4.77 AFC 0 3 1.50 1.00 0.75 0.60 0.50 0.43 0.38 0.33 0.30 0.27 0.25 0.23 AVC 0 4.50 4.25 4.00 3.63 3.20 2.92 2.79 2.75 2.89 3.10 3.55 4.00 4.54 MC 0 4.50 4.00 3.50 2.50 1.50 1.50 2.00 2.50 4.00 5.00 8.00 9.00 11.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 10 20 30 Cost 40 50 60 70 80 90 100 110 120 130 -ATC -AFC -AVC-MC

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To determine the daily profitloss for Paulies Pizza we need to subt... View the full answer