sing the graph below, determine the output level at which the minimum efficient scale is achieved by the firm. The subscripts 1, 2, and 3 for the SRATC curves refer to different plant sizes. e minimum efficient scale is achieved by this firm at output level A. Q₂ B. Q4 C. Q5 D. Q3 E. Q Cost SRATC LRAC SRATC SRATC₂ D E B Output Q1 Q2 Q3 Q4 Q5

What is the law of diminishing returns and what does it imply about the shapeof the firm’s average variable cost and marginal cost curves.

How can I answer H and I with the information given?

How does the average cost curve help to show whether a firm is making profits or losses?

The following cost data is for a firm which is selling in a perfectly competitive market: Average fixed Average variable Average total Total Marginal cost S17 product cost S100.00 50.00 33.33 25.00 20.00 cost $17.00 cost $117.00 66.00 47.33 39.25 34.00 2 16.00 15 3 4 15.00 14.25 14.00 14.00 15.71 17.50 13 12 13 16.67 14.29 12.50 11.11 10.00 9.09 7.33 30.67 30.00 14 26 30 35 7 8. 9. 10 11 30.00 30.55 31.60 33.09 35.00 19.44 21.60 41 24.00 48 12 26.67 56 Refer to the data above. If there were 600 identical firms in this industry and total or market demand is as shown below, equilibrium price will be: Quantity demanded 3,000 6,000 9,000 11,000 14,000 19,500 Price $50 42 36 32 20 13 $36