Question: The table below shows total costs for a purely competitive firm which sells its output at RM90 each Output TC MC AC AVC 0 50

The table below shows total costs for a purely competitive firm which sells its output at RM90 each

Output TC MC AC AVC
0 50 -
1 150 100
2 210 80
3 280 76.67
4 370 80
5 500 90
6 680 105

  1. Complete the above table
  2. What is the equilibrium level of output?
  3. Calculate the amount of profit or loss at equilibrium.
  4. Using marginal approach, sketch a diagram to illustrate the equilibrium of the firm.

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