1.1) Complete the table.  1.2) Draw a graph for each AVC, ATC and MC on one graph.  1.3) Suppose market price is RM20. How much will the firm produce in the short run? How much are total profits?  1.4) Suppose market price is RM60. How much will the firm produce in the short run? How much are total profits?

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 4.7P
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Question

A firm’s costs are given in the following table.

 

q

TC

TFC

TVC

AVC

ATC

MC

0

RM50

 

 

 

 

 

1

70

 

 

 

 

 

2

80

 

 

 

 

 

3

90

 

 

 

 

 

4

110

 

 

 

 

 

5

140

 

 

 

 

 

6

175

 

 

 

 

 

7

220

 

 

 

 

 

8

280

 

 

 

 

 

9

360

 

 

 

 

 

10

450

 

 

 

 

 

 

 

1.1) Complete the table. 

1.2) Draw a graph for each AVC, ATC and MC on one graph. 

1.3) Suppose market price is RM20. How much will the firm produce in the short run? How much are total profits? 

1.4) Suppose market price is RM60. How much will the firm produce in the short run? How much are total profits? 

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