The table below shows the average cost (AC) for a purely competitive market. The average revenue (AR) is constant at RM5
Posted: Sat Feb 19, 2022 2:42 pm
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
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.
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 58 times