4. Refer to the graph below: Price 18 17 16 15 14 13 12 MC ATC 1 2 3 45618 Quantity In the above graph, assume that the price per unit is $10. Based on this information calculate: a. Profit maximization quantity b. Total revenue at that level c. Total cost at that level
4. Refer to the graph below: Price 18 17 16 15 14 13 12 MC ATC 1 2 3 45618 Quantity In the above graph, assume that the price per unit is $10. Based on this information calculate: a. Profit maximization quantity b. Total revenue at that level c. Total cost at that level
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
QUESTION 4 PLEASE
![1. Explain the relationship between price, marginal revenue and average revenue
for a perfectly competitive firm?
2. When does a perfectly competitive firm maximize their profits? What they
should do if at their current production level their marginal revenue is greater
than marginal cost?
3. Explain the difference between a shut-down decision and exiting decision for a
competitive firm? When and how they make such decision?
4. Refer to the graph below:
Price
19
18
MC
16
12
ATC
1 2 3 43 6 1 8 Quantity
In the above graph, assume that the price per unit is $10. Based on this
information calculate:
a. Profit maximization quantity
b. Total revenue at that level
c. Total cost at that level
d. Profit or loss for this firm (if any)
Please refer to the discussion board requirement announcement before posting. First post
due on Thursday, May 6th, and reply to two other student's posts due on Sunday, May
9th.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc3e671be-5699-41c7-ad14-09ef8165fba8%2F9589a7bb-d5b2-401b-9d7a-bfefebe66dc0%2Fl6abrc5_processed.png&w=3840&q=75)
Transcribed Image Text:1. Explain the relationship between price, marginal revenue and average revenue
for a perfectly competitive firm?
2. When does a perfectly competitive firm maximize their profits? What they
should do if at their current production level their marginal revenue is greater
than marginal cost?
3. Explain the difference between a shut-down decision and exiting decision for a
competitive firm? When and how they make such decision?
4. Refer to the graph below:
Price
19
18
MC
16
12
ATC
1 2 3 43 6 1 8 Quantity
In the above graph, assume that the price per unit is $10. Based on this
information calculate:
a. Profit maximization quantity
b. Total revenue at that level
c. Total cost at that level
d. Profit or loss for this firm (if any)
Please refer to the discussion board requirement announcement before posting. First post
due on Thursday, May 6th, and reply to two other student's posts due on Sunday, May
9th.
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