Question 8 ATC TC ATR Q TVC Quantity P TR AVC ATC TFC 0 TC MR MC O 60 O 100 100 60 150 50 2 60 60 50 50 150 100 60 100 18 3 120 178 60 28 39 89 60 4 180 198 60 20 32.6 98 66 100 60 5 240 212 1 12 60 14 28 53 100 60 6 300 230 60 18 2 6 46 100 130 60 7 360 250 60 20 27 41. 6 100 150 60 172 8 420 272 60 22 24.5 38 8 100 9 60 480 310 60 38 26. 2 38. 7 100 210 60 10 540 355 60 45 28. 3 39 . 4 100 255 60 600 415 11 60 60 31 .5 41-5 100 315 60 660 480 60 65 34. 5 43-6 100 380 The data in the table above give information about the price for which a firm can sell a unit of output and the total cost of production. 1. Complete the table. 2. Draw the appropriate curves to show the equilibrium as well as the profit of the firm. 113. Now assume that, for some reason, the market equilibrium price drops to $45. How many units should the firm produce? 4. Show the new equilibrium on your graph. 5. Based on the data on the table. what is the minimum price the firm is willing to keep operating in the short run? Draw the supply curve of the firm. 6. What is the long run equilibrium price and quantity for the firm in this market? 12