Homework Answers
Short Run profit = Total Revenue - Total Cost
Profit = $8 × 153 - $6 × 153 = $306
$1224 is the total revenue as Demad curve is also Average Revenue curve and it is multiplied by quantity it would give Total Revenue.
$918 is the Total cost which is the multiplication of Average Total cost with Quantity produced.
a ) Higher because it sells Differentiated goods and number of firms is more
b) Decrease because number of firms would increase which leads to decrease in profit.
c) One as the name suggest itself there would be only one firms.
d) Increase because there is only one firm and profit would be higher as compared to other market.
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