Company ABC produces goods X which are sold in a perfectly competitive market. The selling price of the goods X on the market is Rp10. The cost curve faced by company ABC for producing goods X and The demand curve for goods X for company ABC is as shown in the following figure. P \MC AC Rp. 10 D=P = MR Rp. 7 AVC 100 unit Determine the balance of goods for ABC company! In this condition of balance, is the company making a profit or suffering a loss? and how much profit / loss is incurred in ABC company in such equilibrium conditions?

Company ABC produces goods X which are sold in a perfectly competitive market. The selling price of the goods X on the market is Rp10. The cost curve faced by company ABC for producing goods X and The demand curve for goods X for company ABC is as shown in the following figure. P \MC AC Rp. 10 D=P = MR Rp. 7 AVC 100 unit Determine the balance of goods for ABC company! In this condition of balance, is the company making a profit or suffering a loss? and how much profit / loss is incurred in ABC company in such equilibrium conditions?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Company ABC produces goods X which are sold in a perfectly competitive market. The selling price of
the goods X on the market is Rp10. The cost curve faced by company ABC for producing goods X and The
demand curve for goods X for company ABC is as shown in the following figure.
P
\MC
AC
Rp. 10
D=P= MR
Rp. 7
AVC
100 unit
Determine the balance of goods for ABC company! In this condition of balance, is the company making a
profit or suffering a loss? and how much profit / loss is incurred in ABC company in such equilibrium
conditions?

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