3. Sally's Shirts Ltd. sells shirts at a price of $22 each. Sally's fixed and variable...

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3. Sally's Shirts Ltd. sells shirts at a price of $22 each. Sally's fixed and variable production costs are indicated in the following table: Units of Output Fixed Variable per Day Costs Costs 0 $200 $0 200 170 200 200 200 10 20 30 40 50 60 200 200 320 440 580 800 1100 Total Costs $ Average Cost per Unit $ || Average Marginal Marginal Cost Revenue Revenue per Unit per Unit per Unit $ $ 1 1 11 (a) Complete the 5 remaining columns in the table. (b) Draw the average cost per unit, marginal cost per unit, average revenue per unit, and marginal revenue per unit curves on the graph at the top of the following page. $30 20 10 30 Output (c) Use the graph in (b) above to determine the following: (i) The level of output at which profits will be maximized is. units per day. 10 20 40 50 60 (ii) At this level of output, the level of profits will be $ per day. (Show your calculation of the level of profits.) (d) Is Sally's Shirts Ltd. operating in a perfectly competitive market? If this firm is in a perfectly competitive industry and is a typical firm which is making profits, what adjustment will occur in the price of the product, and how will this affect the profits of this typical firm? What will be the final equilibrium level of the price? 3. Sally's Shirts Ltd. sells shirts at a price of $22 each. Sally's fixed and variable production costs are indicated in the following table: Units of Output Fixed Variable per Day Costs Costs 0 $200 $0 200 170 200 200 200 10 20 30 40 50 60 200 200 320 440 580 800 1100 Total Costs $ Average Cost per Unit $ || Average Marginal Marginal Cost Revenue Revenue per Unit per Unit per Unit $ $ 1 1 11 (a) Complete the 5 remaining columns in the table. (b) Draw the average cost per unit, marginal cost per unit, average revenue per unit, and marginal revenue per unit curves on the graph at the top of the following page. $30 20 10 30 Output (c) Use the graph in (b) above to determine the following: (i) The level of output at which profits will be maximized is. units per day. 10 20 40 50 60 (ii) At this level of output, the level of profits will be $ per day. (Show your calculation of the level of profits.) (d) Is Sally's Shirts Ltd. operating in a perfectly competitive market? If this firm is in a perfectly competitive industry and is a typical firm which is making profits, what adjustment will occur in the price of the product, and how will this affect the profits of this typical firm? What will be the final equilibrium level of the price?