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Question: question 11 in a perfectly competitive cupcake market a company...

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Question 11.

In a perfectly competitive cupcake market, a company produces cupcakes: 

Cupcake per week (Q)

Fixed costs (FC)

Variable costs (VC)

Total costs (TC)

Marginal costs (MC)

Average total costs (ATC)

Average variable costs (AVC)

0

$1,000

$0

 

N/A

 N/A

 N/A

100

$1,000

$360

 

 

 

 

200

 

$840

 

 

 

 

300

 

$1,440

 

 

 

 

400

 

$2,160

 

 

 

 

500

 

$3,000

 

 

 

 

600

 

$3,960

 

 

 

 

700

 

$5,040

 

 

 

 

800

 

$6,240

 

 

 

 

900

 

$7,560

 

 

 

 

1000

 

$9,000

 

 

 

 

 

a. Fill in the missing values in the table.

 

b. Suppose the equilibrium price in the pizza market is $12. How many pizzas per week should the firm produce, and how much profit per week will the firm make? 

 

 

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