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Table 11.2.4

The four columns of the table are titled Quantity in boxes per week, Marginal cost in dollars per additional box, Average variable cost in dollars per box and Average total cost in dollars per box.The rows display the data as follows:200; 6.40; 7.80; 12.80250; 7.00; 7.00' 11.00300; 7.65; 7.10; 10.43350; 8.40; 7.20; 10.06400; 10.00; 7.50; 10.00450; 12.40; 8.00; 10.22500; 20.70; 9.00; 11.00

Refer to Table 11.2.4, in which 1,000 firms produce paper in a market that is perfectly competitive. If the market price is $7.00 a box, how much paper does a firm produce and what is its economic profit?

Each firm produces ________ boxes a week and ________.

350; incurs an economic loss of $581 a week

300; incurs an economic loss of $834 a week

300; makes zero economic profit

100%

250; incurs an economic loss of $1,000 a week

350; makes zero economic profit

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