The table below shows the average cost (AC) for a purely
competitive market. The average revenue (AR) is constant at RM5 per
unit and the firm’s total fixed cost (TFC) is RM4. Determine the
profit-maximizing output and show the equilibrium of the firm in a
diagram.
Output (Units)
Total Revenue (RM)
Average Cost (RM)
Total Cost (RM)
Marginal Cost (RM)
Marginal Revenue (RM)
1
8.0
2
5.5
3
4.0
4
3.5
5
3.8
6
4.5
7
6.0
The Table Below Shows The Average Cost Ac For A Purely Competitive Market The Average Revenue Ar Is Constant At Rm5 1 (55.39 KiB) Viewed 56 times
Output Total Revenue Average Cost Total Cost Marginal Cost Marginal (Units) (RM) (RM) (RM) (RM) Revenue (RM) 1 8.0 2 5.5 3 4.0 4 3.5 5 3.8 6 4.5 7 6.0 Fill in the values for total revenue (TR), total cost (TC) and marginal cost (MC) in the column provided.
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