pcap4 - . 5. What is the TFC at this level or output? . 6....

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Additional Problem #4 : Pure Competition Use the lettered points in the graph for the questions below. 1. At what output does this firm operate? . 2. What is the MR at this output? . 3. What is the MC at this output? . 4. What is the market price? . 5. What is the TR at this output? . 6. What is the ATC at this output? . What is the TC at this output? . 8. What is the AVC at this output? . What is the TVC at this output? . 9. What is the AFC at this output? . What is the TFC? . 10. Does the firm operate at a profit or loss? . 11. What is the total profit or loss at this output? . 12. What is the per unit profit or loss at this output? . AR = MR = D Q 0 Q $ A B C A B C X X AVC ATC MC
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2 1. How many units of output will this firm produce and sell? . 2. What is the TR at this level of output? . 3. What is the total cost per unit of output at this level or output? . 4. What is the profit or loss per unit of output at this level or output?
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Unformatted text preview: . 5. What is the TFC at this level or output? . 6. What is the TVC at this level or output? . 7. What is the total profit or loss at this level of output? . 8. What is the TC at this level or output? . 9. If the AR=MR declined to $.60, other things remaining equal, this firm would (continue, not continue) to operate in the short run. 10. If the AR=MR delined to $.80, other things remaining equal, this firm would (continue, not continue) to operate in the short run. 11. At a price of $1.20, the entire (fixed, variable) cost would be covered along with part of the ( fixed, variable) costs. 12. At a price of $2.60, would it be better to produce 80 units in order to maximize profits? (Yes, No). Profit per unit? (Yes, No). Briefly explain your answer. $ Q 0 100 2.00 80 1.90 1.20 .80 .60 2.60 MC ATC AVC AR = MR = D h...
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pcap4 - . 5. What is the TFC at this level or output? . 6....

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