Explain why a firm in pure competition is considered to be a “price taker.”

  • 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 is an economic 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


Price per unit Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost Average Variable Cost Average Total Cost Marginal


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              

Are you looking for a similar paper or any other quality academic essay? Then look no further. Our research paper writing service is what you require. Our team of experienced writers is on standby to deliver to you an original paper as per your specified instructions with zero plagiarism guaranteed. This is the perfect way you can prepare your own unique academic paper and score the grades you deserve.

Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.