Question 4 The following graph shows the price, marginal cost, and average cost curves for Patta Sdn Bhd which is a company that produces closed substitute products. 30 25 20 15 110 120 MC Figure 2 3 MR ATC Answer questions (a) to (d) below based on Figure 2. a) Justify the type of market structure the firm is operating in. Justify your answer. b) What is the profit-maximizing price and output for this firm? c) Calculate the amount of profit or loss at the equilibrium point. d) Explain the characteristics of the market structure based on types of products, pricing power, number of firms, and barriers of entry and exit for Patta Sdn Bhd. e) What are THREE (3) examples of companies that exhibit characteristics of oligopoly competition? Why?

Question 4 The following graph shows the price, marginal cost, and average cost curves for Patta Sdn Bhd which is a company that produces closed substitute products. 30 25 20 15 110 120 MC Figure 2 3 MR ATC Answer questions (a) to (d) below based on Figure 2. a) Justify the type of market structure the firm is operating in. Justify your answer. b) What is the profit-maximizing price and output for this firm? c) Calculate the amount of profit or loss at the equilibrium point. d) Explain the characteristics of the market structure based on types of products, pricing power, number of firms, and barriers of entry and exit for Patta Sdn Bhd. e) What are THREE (3) examples of companies that exhibit characteristics of oligopoly competition? Why?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Based on the information in the table below, determine what quantity this firm should produce to maximize its profit. Quantity Marginal Cost Average Total Cost P=Marginal Revenue Total Cost 0 $ 100 1 $ 200 $ 300 $ 200 $ 300 2 $ 100 $ 200 $ 200 $ 400 3 $ 70 $ 157 $ 200 $ 470 4 $ 100 $ 143 $ 200 $ 570 5 $ 142 $ 142 $ 200 $ 712 6 $ 200 $ 152 $ 200 $ 912 7 $ 270 $ 169 $ 200 $ 1,182 8 $ 318 $ 188 $ 200 $ 1,500 Group of answer choices
$150 $145 $140 MC $135 $130 $125 $120 $115 ATC $110 $105 $100 $95 $90 $85 $80 AVC $75 $70 $65 $60 $55 $50 $45 $40 $35 $30 $25 0 1 2 3 5 6 Quantity Produced 7 8 9 10 11 The graph above shows the cost functions for a perfectly competitive profit maximizing firm. If the market price of the product is $70 per unit, the firm will produce units, will cover make an economic profit of dollars. dollars of its fixed cost, and will
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Question 5 of 15 - Ch.11: Imperfect Competition lanlearning.com/sac/9960936#/9960936/4/-1 Assignment Score: 66.7% Question 5 of 15 > O Macmillan Learning Check Answer Give Up? (Figure: Market for Two-Firm Industry I) The graph depicts the market demand curve for a two-firm industry. Price ($) 20 18 16 14 12 10 6 2 8448 MC MR D 0 1 2 3 4 5 6 7 8 9 10 Quantity (100s) If the two firms collude and evenly split the market output, how much output will each firm produce? 200 units 150 units 400 units 300 units C
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calculate the Predicted yearly profit levels