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31. Assume that a purely competitive firm has the schedule of total fixed and total variable costs given in the
table below. Fill in the total cost column.
Output TFC TVC TC
0 $500 $ 0 $_____
2 500 200 _____
4 500 340 _____
6 500 590 _____
8 500 1000 _____
10 500 1650 _____
(a) Complete the table below to show the total revenue and total profit of the firm at each level of output
the firm might produce. Assume market prices of $50, $150, and $250.
Market price = $50 Market price = $150 Market price = $250
Output Total revenue Profit (+) or loss (−) Total revenue Profit (+) or loss (−)
Total revenue Profit (+) or loss (−)
0 $_____ $_____ $_____ $_____ $_____ $_____
2 _____ _____ _____ _____ _____ _____
4 _____ _____ _____ _____ _____ _____
6 _____ _____ _____ _____ _____ _____
8 _____ _____ _____ _____ _____ _____
10 _____ _____ _____ _____ _____ _____
Price Quantity supplied Profit (+)
or loss (−)
$ 50_____ $_____
150 _____ _____
250 _____ _____
Output TFC TVC TC
0 $500 $ 0 $500
2 500 200 700
4 500 340 840
6 500 590 1090
8 500 1000 1500
10 500 1650 2150
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32. (Last Word) Why do high fixed costs force firms to shut down temporarily or shut down forever?