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ECON 221 Diablo Valley College Total Revenue & Perfectly Competitive Market HW

ECON 221 Diablo Valley College Total Revenue & Perfectly Competitive Market HW

ECON 221 Diablo Valley College Total Revenue & Perfectly Competitive Market HW


This is a firm in a perfectly competitive market. The selling price is $5.

Fill in the table below and enter the answers to the questions down below:

1-How many units should be produced?

2- What will be the profit per unit?

3- What will be the total profit?

4- If the price were to drop to $4 how many units should be produced?

5- What will be the total profits?

6- If the price falls to $1, how many units should be produced?

7- At what price will you break even?

8- At what price should the company close down?

9- At what price will you be minimizing losses?

10- There are 2 ways of calculating the change in total profits. List and explain what information you would use.

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