Mohamed produces Toys in the perfectly competitive Toys market.
Fill in the missing values in the following table: (5 marks)
Suppose the equilibrium price in the Toys market is $30. How many Toys should Mohamed produce? How much profit will he make? (1 mark)
If next week the equilibrium price of Toys drops to $15, should Mohamed shut down? Explain. (1 mark)
Output per week
Total Cost
FC
VC
AFC
AVC
ATC
MC
0
$100
1
150
2
175
3
190
4
210
5
240
6
280
7
330
8
390
9
460
10
54
