Question
Shakti inc has been granted a patent for its America toothache balm.

Part II (choose A or B) Shakti Inc has been granted a patent for its America toothache balm. The table below shows the demand and the total cost schedule for the firm A. Quantity (cases) 0 Price (dollars 80 72 Total Cost dollars) 80 56 48 40 32 24 16 100 124 164 208 268 340 5. Graph the demand, marginal revenue, and the marginal cost curves
Determine the profit maximization output and price and compute the profit or loss. 6. Determine the deadweight loss and illustrate it graphically. 7. Determine the revenue maximization output and price. Illustrate graphically the relationship between maximum revenue, demand and marginal revenue. Be specific 8. Explain how a deadweight loss is generated in an imperfect market. 9. If the government decides to correct the DWL by focusing on the behavior of the firm, What price consumers should pay for this product? What is the downside of this method of correcting a DWL?
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4. Will the firm stay in the industry? Why? 5. Determine the maximum proft 6. Illustrate graphically the maximum profit and the break-even output for this firm by drawing all the relevant curves Explain and illustrate graphically the principle of diminishing marginal productivity. What differentiate a firm in a monopolistic competitive market from a firm in an oligopoly market? 7. To produce goods firms need to raise fund. What are the different methods of raising funds to operate or expand businesses in a market economy. For each method illustrate your answer with a graph. 8.
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