Using MS Excel or a table in MS Word, complete Table-1 (Joseph Farms, Inc., Cost and Revenue Data).
Assume that the price is $165.
Assume the fixed costs are $125, at an output level of 1.
Assume that the data represents a firm in pure competition.
Show your calculations.
Explain the MC=MR Rule. Describe the market structures to which this rule applies.
Create a chart to illustrate the data in Columns 9 and 10.
Describe the profit maximizing (or loss minimizing) output for this firm. Explain why or why not there is an economic profit?
Explain why a firm in pure competition is considered to be a "price taker."
(Assignment continues below Table-1.)
Table-1: Joseph Farms, Inc., Cost and Revenue Data
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Column 1
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Column 2
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Column 3
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Column 4
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Column 5
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Column 6
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Column 7
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Column 8
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Column 9
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Column 10
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Column 11
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Output
Level
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Price per unit
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Total Fixed Cost
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Total Variable Cost
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Total Cost
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Average Fixed Cost
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Average Variable Cost
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Average Total Cost
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Marginal
Cost
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Marginal Revenue
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Total Revenue
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0
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$ -
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NA
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1
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$ 113.00
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2
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$ 213.00
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3
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$ 300.00
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4
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$ 375.00
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5
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$ 463.00
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6
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$ 563.00
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7
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$ 675.00
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8
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$ 813.00
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9
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$ 975.00
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10
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$ 1,163.00
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