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Unformatted text preview: 5. Given the industry demand and supply for the good derive the average revenue (AR) and marginal revenue (MR) curve for the representative competitive firm. 6. Given the total revenue for the representative competitive firm you should be able to calculate the average and the marginal revenue, and given the total revenue curve you should be able to graph the average and marginal revenue curves. 7. Describe the equilibrium behavior for a profit-maximizing competitive firm. What is the equilibrium quantity and why? Are there any economic profits? Can you calculate them? Can you show them on the graph? 8. Understand the exact relationship between short-run supply curve for a firm and marginal cost. 9. Explain what the shut down point for the representative firm is. Be able to show it on a graph....
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- Fall '07