You own four firms that produce different products. The following table summarizes the conditions in each firm. After calculating the missing numbers for each firm, make one of the following four decisions regarding operations in each firm, and explain why a particular decision is reached.

(a) continue producing the same output level
(b) shut down
(c) increase output
(d) decrease output
*hint*- if MR>MC increase; if MR<MC decrease, if MR=MC no change; if AVC>P shut down
FIRM P MR TR Q TC MC ATC AVC
A 11 8 ? 20 200 5 ? 9
B 3 1 ? 100 ? 1.5 2.5 2
C 4 2 200 ? ? 2 7 5
D 8 5 ? 10 70 5 ? 6

To determine the missing numbers and decide on the appropriate action for each firm, let's analyze the given data using the provided hints.

FIRM A:
MR (Marginal Revenue) = 11
TR (Total Revenue) = 8
Q (Quantity) = ?
TC (Total Cost) = 20
MC (Marginal Cost) = ?
ATC (Average Total Cost) = ?
AVC (Average Variable Cost) = 9

First, let's calculate the missing values:
Q = TR / MR = 8 / 11 ≈ 0.73
MC = TC - (Q * MC) = 20 - (0.73 * 200) = 20 - 146 ≈ 54
ATC = TC / Q = 200 / 0.73 ≈ 273.97

Since MR is greater than MC, we should increase the output in Firm A. Therefore, the decision for Firm A is to (c) increase output.

FIRM B:
MR = 3
TR = 1
Q = ?
TC = 100
MC = ?
ATC = 1.5
AVC = 2.5
P (Price) = 2

First, let's calculate the missing values:
Q = TR / MR = 1 / 3 ≈ 0.33
MC = TC - (Q * MC) = 100 - (0.33 * 100) = 100 - 33 ≈ 67

Since AVC (Average Variable Cost) is greater than P (Price), we should shut down Firm B. Therefore, the decision for Firm B is to (b) shut down.

FIRM C:
MR = 4
TR = 2
Q = 200
TC = ?
MC = 2
ATC = ?
AVC = 7

First, let's calculate the missing values:
TC = TR + (Q * MC) = 2 + (200 * 2) = 2 + 400 = 402
ATC = TC / Q = 402 / 200 = 2.01

Since MR (Marginal Revenue) is equal to MC (Marginal Cost), there is no need to change the output level in Firm C. Therefore, the decision for Firm C is to (a) continue producing the same output level.

FIRM D:
MR = 8
TR = 5
Q = ?
TC = 10
MC = 70
ATC = ?
AVC = 6

First, let's calculate the missing values:
Q = TR / MR = 5 / 8 ≈ 0.625
ATC = TC / Q = 10 / 0.625 ≈ 16

Since MR is less than MC, we should decrease the output in Firm D. Therefore, the decision for Firm D is to (d) decrease output.

To summarize the decisions for each firm:
(a) Continue producing the same output level - Firm C
(b) Shut down - Firm B
(c) Increase output - Firm A
(d) Decrease output - Firm D

To make a decision for each firm, we need to calculate the missing numbers and then analyze the conditions based on the provided hints.

Let's calculate the missing numbers for each firm:

For Firm A:
- To find the missing total revenue (TR), we can use the formula TR = MR x Q. Plugging in the given MR (11) and solving for TR, we get TR = 11 x 8 = 88.
- To find the missing average total cost (ATC), we can use the formula ATC = TC / Q. Plugging in the given TC (200) and the given Q (8), we get ATC = 200 / 8 = 25.

The updated table for Firm A now looks like this:
FIRM P MR TR Q TC MC ATC AVC
A 11 88 8 20 200 5 25 9

For Firm B:
- To find the missing total revenue (TR), we can use the formula TR = MR x Q. Plugging in the given MR (3) and solving for TR, we get TR = 3 x 1 = 3.
- To find the missing total cost (TC), we cannot directly calculate it as it is missing. Therefore, we cannot determine whether to shut down or continue production for Firm B.

The updated table for Firm B now looks like this:
FIRM P MR TR Q TC MC ATC AVC
B 3 3 1 ? ? 1.5 2.5 2

For Firm C:
- To find the missing total revenue (TR), we can use the formula TR = MR x Q. Plugging in the given MR (4), we can calculate TR = 4 x 2 = 8.
- To find the missing total cost (TC), we cannot directly calculate it as it is missing. Therefore, we cannot determine whether to shut down or continue production for Firm C.

The updated table for Firm C now looks like this:
FIRM P MR TR Q TC MC ATC AVC
C 4 8 2 ? ? 2 7 5

For Firm D:
- To find the missing total revenue (TR), we can use the formula TR = MR x Q. Plugging in the given MR (8) and solving for TR, we get TR = 8 x 5 = 40.
- To find the missing average variable cost (AVC), we can use the formula AVC = TC / Q - MC. Plugging in the given TC (70), Q (5), and MC (5), we can calculate AVC = 70 / 5 - 5 = 14 - 5 = 9.

The updated table for Firm D now looks like this:
FIRM P MR TR Q TC MC ATC AVC
D 8 40 5 10 70 5 ? 9

Now, let's analyze the conditions for each firm based on the hints:

Firm A:
- MR (11) > MC (5): In this scenario, it is beneficial to increase the output. Therefore, the decision for Firm A is to increase output (c).

Firm B:
Since the total cost (TC) is missing, we cannot make a decision for Firm B.

Firm C:
Since the total cost (TC) is missing, we cannot make a decision for Firm C.

Firm D:
- MR (8) < MC (5): In this scenario, it is beneficial to decrease the output. Therefore, the decision for Firm D is to decrease output (d).

To summarize:
- For Firm A, the decision is to increase output (c).
- For Firm B, we cannot make a decision due to missing information.
- For Firm C, we cannot make a decision due to missing information.
- For Firm D, the decision is to decrease output (d).