Question 1 20 Marks The Diagram Below Represents The Short Run Cost And Revenue Curves Of A Firm Deka Bhd Cost And R 1 (26.76 KiB) Viewed 19 times
Question 1 20 Marks The Diagram Below Represents The Short Run Cost And Revenue Curves Of A Firm Deka Bhd Cost And R 2 (36.73 KiB) Viewed 19 times
QUESTION 1 (20 MARKS) The diagram below represents the short-run cost and revenue curves of a firm, Deka Bhd. Cost and revenue (RM) 16 15 12 10 MC 90 150 AVC AC AR Quantity
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)
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