Question

MC ATC S d., MA, Question 4. Assume this form is trying to maximize Profit under Perfect Competition. How much is its Profit or Loss? Show your solution Price and Cost(dollars) TE 15x17 255 TC-11717= 187 TR>TC Tuc=119 TFC 68 255-189 I Profit = 68 Te-TUC+ TF C l Quantity (a) Case 1 MC ATC Question 5. Assume this firm is trying to maximize Profit under Perfect Competition. How much is its Profit or Loss? Show your solution. LOS Price and Cost (dollars) - dg Mp3 AVC TR= 162 180-162 I Loss = 18 76 - 180 Toc: 36 TEC 144 TC7TR Quantity (c) Case 3 6. Refer to Number 5. How much money would this firm lose if it did not produce any output? Show your solution. 7. Refer to Number 5. If you were the owner of the firm, would you continue to produce at an output of 18, or would you stop production altogether? Whatever your answer is, explain why.

Answer 1

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