Answer The Following Questions Based On The Diagram Below Price Cost Revenue Rm Mc 70 Ar Mr Dd 50 Ar Mr Dd 1 (43.56 KiB) Viewed 41 times
Answer The Following Questions Based On The Diagram Below Price Cost Revenue Rm Mc 70 Ar Mr Dd 50 Ar Mr Dd 2 (46.97 KiB) Viewed 41 times
Answer the following questions based on the diagram below. Price Cost / Revenue (RM) MC 70 AR - MR = DD 50 AR = MR = DD 25 AR = MR - DD 15 AR= MR = DD 10 AR = MR - DD Output (unit) 15 28 35 50 (a) Identify the type of market structure that the firm is operating in and define the market structure. [3 marks) (b) If the price is RM25 and the average cost is RM40, calculate the profit or loss at equilibrium [2 marks]
(c) State the type of profit the firm is earning. Justify your answer. [2 marks] (d) If the price is RM50, the total cost is RM2000 and the economic profit is RM250, calculate the equilibrium output (X). [2 marks (e) If the price is RM15 and the average cost is RM10, calculate the profit or loss at equilibrium [2 marks] (1) State THREE (3) types of short run profit that is possibly enjoyed by the market structure you named in (a). [3 marks) (g) State the type of profit earned by this market structure in the long run. Give your reason. [2 marks] (h) State FOUR (4) similarities between monopolistic competition and perfect competition. 14 marks)
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