Use the following demand-and-cost information vis-à-vis three firms: Firm A, Firm B and Firm C operating in three different market structures in the short run, to answer the questions that follow.
Use the following demand-and-cost information vis-à-vis three firms: Firm A, Firm B and Firm C operating in three different market structures in the short run, to answer the questions that follow.
|
|
Firm A |
Firm B |
Firm C |
|
|
2000 |
1500 |
60 |
|
Profit maximising price (R) |
1000 |
? |
60 |
|
Profit maximising output level (units) |
30 |
50 |
2500 |
|
MC at profit maximising output level (R) |
? |
275 |
60 |
|
|
1300 |
? |
36 |
|
|
900 |
300 |
? |
|
Minimum ATC (R) |
1200 |
320 |
30 |
|
Minimum AVC (R) |
800 |
280 |
3 |
|
Price at |
160 |
580 |
? |
|
Allocative efficient level of output (units) |
150 |
200 |
2500 |
|
Lerner index |
0.8 |
? |
0 |
|
Total Fixed Cost (R) |
? |
2000 |
75000 |
|
Total Variable Cost at profit maximising output level (R) |
27000 |
15000 |
? |
|
Mark-up |
? |
4 |
? |
Calculate each of the following for Firm B:
DWL =
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