Question

EXERCISE A: Answer ONLY ONE OF the following. (10 points) 1- Construct a list of the attributes of each market structure. 2-Assemble a list of firms from which you buy products in each of the four market structures. EXERCISE B: Answer ANY 5 (40 points- 8 points each) 1. Below is a cost and revenue table for a perfectly competitive firm producing purple- spotted people eaters, Fill in the missing information assuming that market price is $24. MR TR Profit O 0 1 2 FC TCMC ATC 105 105 NA NA 105 135 30 135 105 160 2580 105 180 20 60 105 195 15 48.75 105 215 20 43 105 250 35 41.67 105 295 45 42.14 105 355 60 44.375 6 7 8 2. What is the profit maximizing (or loss-minimizing) level of output for this firm? (Assume there are no fractional levels of output - the firm can produce two people eaters or three people eaters, but not 2.5 or 3.75 people-eaters.) 3. We usually say that the competitive firm maximizes profits by choosing the output level that makes MC=MR - but that isn't exactly true here at the optimal level of people-eater output. Why not?

Answer 1

MR Profit -1051 24 4824 72 96 -105 -111 -112 -108 -११ -95 -106 . 120 24 14424 1682 १२ 24 -127 -163