QUESTION 1 (20 MARKS) The diagram below represents the short-run cost and revenue curves of a firm, Deka Bhd. a) Identif

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Question 1 20 Marks The Diagram Below Represents The Short Run Cost And Revenue Curves Of A Firm Deka Bhd A Identif 1 (22 KiB) Viewed 13 times

Question 1 20 Marks The Diagram Below Represents The Short Run Cost And Revenue Curves Of A Firm Deka Bhd A Identif 2 (22.41 KiB) Viewed 13 times

Question 1 20 Marks The Diagram Below Represents The Short Run Cost And Revenue Curves Of A Firm Deka Bhd A Identif 3 (24.41 KiB) Viewed 13 times

QUESTION 1 (20 MARKS) The diagram below represents the short-run cost and revenue curves of a firm, Deka Bhd. a) Identify the market structure of the firm operating in perfect competition or monopoly or monopolistic competition. Give a reason for your answer. (4 marks) b) Find the profit- maximizing price and output. (2 mark)
c) Calculate the amount of total revenue (TR), total cost (TC), and profit/loss at equilibrium. State the type of profit. (10 marks) d) Should the firm continue or shut down its operation? Why? (4 marks)
QUESTION MARKS) Compare and contrast any FIVE (5) characteristics between monopolistic competition and perfect competition. (10 marks) QUESTION 3 (10 MARKS) Using diagrams, illustrate and explain the differences between supernormal profit and normal profit of a monopoly firm in the short run. (10 marks)