Answer Happy

Question 1 (30 points). Points are listed in the brackets in each part Assume the short-run cost table above represents the cost for a firm in a purely competitive industry. Total product is the Q of production. Total product TFC TVC TC AFC AVC ATC MC 0 40 95 75 15 4 150 5 135 6 170 a. Complete the table above (6 points) b. Applying the rule of profit maximization, if the product market price of $35, will this firm produce, why or why not (3 points) c. At price $35, how much should this firm produce? (4 points) d. How much will the profit/loss./break-even? (4points) e. How much is the marginal revenue? (3 points) f. Show the situation graphically with MR, Demand, ATC, AVC, and MC graphs. Label the equilibrium Q and Price points (10 points) 1 2 3
Question 2: Do parts a, and b ( 10 points each) a. Identify the four types of market structures. What are the characteristics of the four types of market structure b. Draw the short-run ATC, AVC, MC, MR and Demand graphs for a perfectly competitive market experiencing a profit. In each part, show Total Cost (TC), Total Revenue (TR), shade the profit. Clearly label Q for the equilibrium quantity point and P for market price point.
Question 3: Monopoly graph. Do parts a, b, c (10 points each for total of 30 points) Draw the short-run ATC, AVC, MC, MR and Demand graphs for a monopoly market. In each part, show Total Cost (TC), Total Revenue (TR), shade the profit or loss. Clearly label Q for the equilibrium quantity point and P for market price point. a. Draw a profit situation b. Draw a loss (not shutdown) situation c. Draw a monopoly and perfectly competitive industry on the same graph space. Only show equilibrium quantity and price of monopoly (Qm and Pm) and quantity and price for a perfect competition situation denoted as (Qpc and Ppc). You do not need to identify TR, TC or shade the profit in this graph.