Perfect Competition and Monopoly
Complete the table below and answer the corresponding questions.
|
Price
|
Output
|
Total
Revenue
|
Marginal
Revenue
|
Total Cost
|
Marginal
Cost
|
Average
Total
Cost
|
Profit
|
|
30
|
0
|
|
|
100
|
|
|
|
|
30
|
1
|
|
|
128
|
|
|
|
|
30
|
2
|
|
|
150
|
|
|
|
|
30
|
3
|
|
|
165
|
|
|
|
|
30
|
4
|
|
|
185
|
|
|
|
|
30
|
5
|
|
|
210
|
|
|
|
|
30
|
6
|
|
|
245
|
|
|
|
|
30
|
7
|
|
|
290
|
|
|
|
|
30
|
8
|
|
|
350
|
|
|
|
Q1. Does the table depict a firm facing perfect competition or a monopolistic firm? Explain.
Q2. According to the table, what are this firms fixed costs?
Q3. What is the profit maximizing level of output?
Q4. What is the maximum profits this firm can attain?
Q5. Why would this firm decide to produce instead of shut-down?
Q6. What would happen in the long-run to get this firm back to the long-run equilibrium?
Complete the table below and answer the corresponding questions.
|
Price
|
Output
|
Total
Revenue
|
Marginal Revenue
|
Total Cost
|
Marginal
Cost
|
Average
Total
Cost
|
Profit
|
|
75
|
0
|
|
|
100
|
|
|
|
|
70
|
1
|
|
|
128
|
|
|
|
|
65
|
2
|
|
|
150
|
|
|
|
|
60
|
3
|
|
|
165
|
|
|
|
|
55
|
4
|
|
|
185
|
|
|
|
|
50
|
5
|
|
|
210
|
|
|
|
|
45
|
6
|
|
|
245
|
|
|
|
|
40
|
7
|
|
|
290
|
|
|
|
|
35
|
8
|
|
|
350
|
|
|
|
Q1. Does the table depict a firm facing perfect competition or a monopolistic firm? Explain.
Q2. According to the table, what are this firms fixed costs?
Q3. What is the profit maximizing level of output?
Q4. What is the maximum profits this firm can attain?
Q5. Why would this firm decide to produce instead of shut-down?
Q6. What did this business to decrease their losses?