Assume you are the manager of a firm producing a product in a specific market structure. Provide the following information:
- Describe your product and the specific cost components of your product.Make the distinction between the fixed and variable costs associated in the production of your product.
- Provide reasons why th firm meets the characteristics of a particular market structure.Explain how this impacts your ability to set price.Does your firm face a downward sloping demand curve?What price do you charge for your product and why?
- In a table using hypothetical data, please provide total fixed cost, average fixed cost, total variable cost, average variable cost, total cost, average total cost, and marginal cost schedules.
- In a second table, indicate your profit maximizing output using price, marginal revenue, and marginal cost schedules. What profit/loss does your firm earn/incur?