Name _________________________________________ Course & Year________________

Time Started________Time Finished ________________ Date Performed______________

PRICE AND OUTPUT DETERMINATION UNDER PURE COMPETITION

Activity No. 8

A. Complete the table below:

Output TVC TFC TC AVC AFC ATC MC
0 0 60 60
1 105
2 145
3 180
4 210
5 245
6 285
7 330
8 385
9 450
10 525

B. Given the values in the above table, graph the Total Fixed Cost, Total Variable Cost and Total Cost curves with
costs on the vertical axis and output on the horizontal axis. Label all curves properly. Use graphing paper for your
curves if you do not have computer/laptop access but insert graph is recommended.

C. Superimpose the Total Revenue curves found in item D.

D.1. Assume a product price of P 56, will this firm produce in the short run? __________________Why or why not?
____________________________________________________
2. Assume a product price of P 41, compute for the TR and superimpose this TR curve in item C.
3. Repeat the same for a product price of P32 and determine the profit/loss to complete the table below

TP TC TR: P=56 Profit/Loss TR: P=41 Profit/Loss TR: P=32 Profit/Loss

0 60
1 105
2 145
3 180
4 210
5 245
6 285
7 330
8 385
9 450
10 525
E. 1. Copy the per unit costs computed in Item A.
Output AVC AFC ATC MC MR: P = 56 MR: P = 41 MR: P = 32
0
1
2
3
4
5
6
7
8
9
10

2. Graph the average or per unit cost curves. (AFC, AVC, ATC and MC). Label each curve properly. Use
graphing paper for your curves if you do not have computer/laptop access but insert graph is recommended.
3. Superimpose the MR curves. (Draw the curves using graphing/cross section paper.
4. Highlight answers.

Notes: All axes and curves must be properly labeled.

Use colors to distinguish each of the curves in each graph.

Color Code
Black – TFC and AFC Yellow - MC
Blue – TVC and AVC Red – TC and ATC
Green – TR and MR