1.Aperfectly competitive firm has the following fixed and variable costs in theshort run. The market price for the firm’s product is $140. Output FC VC TC TR Profit/Loss 0 $90 $ 0 ___ ___ ___...

1. A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firm’s product is $140.

Output
FC VC TC TR
Profit/Loss

0 $90 $ 0 ___ ___ ___

1 90 90 ___ ___ ___

2 90 170 ___ ___ ___

3 90 290 ___ ___ ___

4 90 430 ___ ___ ___

5 90 590 ___ ___ ___

6 90 770 ___ ___ ___

a. Complete the table.

b. What level of output should the firm produce to maximize profits?

2. How does the demand curve faced by a monopoly differ from the demand curve faced by a perfectly competitive firm? Explain.

3. The following table provides market share information about the soft-drink industry.

Do you think the Department of Justice and the Federal Trade Commission would approve a merger between any two of the first three companies listed? Explain.