•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 an accounting 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
Column 1
Column 2
Column 3
Column 4
Column 5
Column 6
Column 7
Column 8
Column 9
Column 10
Column 11
Output
Level
Price per unit
Total Fixed Cost
Total Variable Cost
Total Cost
Average Fixed Cost
Average Variable Cost
Average Total Cost
Marginal
Cost
Marginal Revenue
Total Revenue
0
$ -
NA
1
$ 113.00
2
$ 213.00
3
$ 300.00
4
$ 375.00
5
$ 463.00
6
$ 563.00
7
$ 675.00
8
$ 813.00
9
$ 975.00
10
$ 1,163.00