(a) Fill in Table 2. 

(b) Using your own piece of graph paper, draw a graph of the firm’s demand, marginal revenue, marginal cost, and average total cost curves.

(c) Calculate the firm’s total profit.

(d) If the firm operates at optimum efficiency, how much will its output be?

(e) If the firm were a perfect competitor, how much would its price be in the long run?

TABLE 2 Total Marginal Total Output Price Revenue Revenue Cost 1 2 3 4 5 6 7 $22 21 20 19 18 17 16 $30 42 51 60 70 82 98 ATC MC