### Exercises on Firm's Economic Analysis#### (a) Calculate the firm’s total profit.**Instructions:** Round your answer to the nearest whole number. **Total profit:** $ ____ #### (b) If the firm operates at optimum efficiency, how much will its output be?**Instructions:** Round your answer to the nearest whole number. **Optimum output:** ____ #### (c) If the firm were a perfect competitor, how much would its price be in the long run?**Instructions:** Round your answer to the nearest whole number. **Long run price:** $ ____ ---This exercise helps students understand concepts of profit maximization, efficiency in production, and pricing strategies in different market structures. Use these problems to apply economic theory in practical scenarios. Using the data in the graph below, answer the following questions.### Graph Analysis#### Graph Description:The graph presented displays various economic curves with the Price ($) on the vertical axis and Output on the horizontal axis. It includes the following curves:1. **MC (Marginal Cost)**: This curve is represented in blue and is upward-sloping, showing that as output increases, the marginal cost also rises.2. **ATC (Average Total Cost)**: Shown in a dark red curve, it is typically U-shaped, reflecting that at lower levels of output, cost decreases, but as output expands beyond a certain point, costs begin to rise again.3. **D (Demand)**: This green line slopes downward from left to right, indicating the inverse relationship between price and quantity demanded.4. **MR (Marginal Revenue)**: This green line is also downward-sloping and lies below the demand curve, typical in imperfect competition, where the additional revenue from selling an extra unit decreases as more units are sold.#### Key Points:- The intersection of the MC and MR curves indicates the profit-maximizing level of output.- The point where the ATC curve intersects with the price level determines the break-even point.- The MC curve intersects the ATC curve at its lowest point, defining productive efficiency.Use this graph to explore concepts related to cost structures, market efficiency, and pricing strategies in microeconomics.

According to the given graph, it can be said that it is the cost and revenue function of a firm that…

Answered: Using the data in the graph below,…

Using the data in the graph below, answer the following questions. 17 MC 16 15 ATC 13 12 D 11 MR 10 2 4 6 8 10 12 14 16 Output Price ($) 14

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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