How to calculation part C and D ? Suppose that a firm in a market has the following total variable costs(TVC):TotalAverageTotalvariableMarginal TotalMarginal TotalTotal Cost Cost$OutputcostRevenueRevenuecost2$2$$1$ 41131541852227It also has fixed costs of $7. If the market price is $5perunit:(a) Explain four features of the above-market structure.(b) Complete the above table in calculating the total cost, marginal cost, total revenue, marginalrevenue, and average total cost of a competitive firm.(c) Find the above firm's profit-maximizing quantity. Explain your answer with a relevantdiagram.(d) Is the above firm earning a positive economic profit, suffering a loss, or break-even at theprofit-maximizing quantity? Show your calculation with a relevant diagram.(e) Is the above firm operating in a short run or long run situation? Explain your answer.

Given:- TVC(Total variable cost) at various level of output. Fixed cost is 7 and market price is 5.…

Suppose that a firm in a market has the following total variable costs(TVC): Total Average Total variable Marginal Total Marginal Total Total Cost Cost $ Output cost Revenue Revenue cost $ $ $ 1 $ 4 2 11 15 4 18 5 22 6 27 It also has fixed costs of $7. If the market price is $5 per unit: (a) Explain four features of the above-market structure. (b) Complete the above table in calculating the total cost, marginal cost, total revenue, margin revenue, and average total cost of a competitive firm. (c) Find the above firm's profit-maximizing quantity. Explain your answer with a relevant diagram. (d) Is the above firm earning a positive economic profit, suffering a loss, or break-even at the profit-maximizing quantity? Show your calculation with a relevant diagram.

Suppose that a firm in a market has the following total variable costs(TVC): Total Average Total variable Marginal Total Marginal Total Total Cost Cost $ Output cost Revenue Revenue cost $ $ $ 1 $ 4 2 11 15 4 18 5 22 6 27 It also has fixed costs of $7. If the market price is $5 per unit: (a) Explain four features of the above-market structure. (b) Complete the above table in calculating the total cost, marginal cost, total revenue, margin revenue, and average total cost of a competitive firm. (c) Find the above firm's profit-maximizing quantity. Explain your answer with a relevant diagram. (d) Is the above firm earning a positive economic profit, suffering a loss, or break-even at the profit-maximizing quantity? Show your calculation with a relevant diagram.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 3P

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