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?
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?
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 4.7P
Related questions
Question
A firm’s costs are given in the following table.
q |
TC |
TFC |
TVC |
|
|
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
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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