1.  Define the supply curve of a perfectly competitive firm.

2. Use the preceding graph to answer the following questions.  Find the shutdown point. What is the quantity produced, average total cost, average variable cost, total cost, total variable cost, and profit (loss) at this point?  Find the break-even point. What is the quantity produced, average total cost, average variable cost, total cost, total variable cost, and profit (loss) at this point?  If MR = 10, then what is the quantity produced, average total cost, average variable cost, total cost, total variable cost, and profit (loss) at this point?  Define in words and write the formula for TFC, TC, TVC, MC, AVC, ATC, and AFC. There may be more than one formula for each.

3.  Fill in the missing cells. Assume the firm operates in a perfectly competitive environment in both the input and output markets. Calculate the profit (loss) when the firm receives $0.40 for the product. LQP(L)TFCTVCTCMCATCAVCAFC 2205110 65.4 80.375 90150

4.  List four conditions for perfect competition. a. b. c. d.  The following information pertains to a production schedule for sorghum from a west Texas farm. a. Which input is the variable input? b. Which input is the fixed input? c. Fill in the blanks in the table Land (Acres) Fertilizer (Pounds) Sorghum Yield (Tons)MPPAPP Stage of Production 44068-- 4751.25

5.  Complete the following table. InputOutputTFCTVCTCMCAFCAVCATC 220100125--.40--.10