Assume that the purely competitive firm operates as described below: Q TFC TVC TC AC MC TR MR Profit 3 Graph TR and TC for the firm 1 8. 4. 11 15 6. 21 7. 30 8. 42 6. 60 10 85 (a) Complete all the cost columns. (b) Assume price = $5. Complete the rest the table. (c) Graph TR and TC on the graph up and to the right. (d) For the market graph below on the right, label demand, supply and the prevailing market price. Label the equilibrium market quantity with q*. (e) For the firm graph below to the left, label the axis. PLOT USING THE DATA IN THE TABLE the demand curve the firm faces, the marginal revenue curve, the average cost curve, the marginal cost curve, and the equilibrium price, quantity. Show the profit. Do all the plots give you the same answer?

Assume that the purely competitive firm operates as described below: Q TFC TVC TC AC MC TR MR Profit 3 Graph TR and TC for the firm 1 8. 4. 11 15 6. 21 7. 30 8. 42 6. 60 10 85 (a) Complete all the cost columns. (b) Assume price = $5. Complete the rest the table. (c) Graph TR and TC on the graph up and to the right. (d) For the market graph below on the right, label demand, supply and the prevailing market price. Label the equilibrium market quantity with q*. (e) For the firm graph below to the left, label the axis. PLOT USING THE DATA IN THE TABLE the demand curve the firm faces, the marginal revenue curve, the average cost curve, the marginal cost curve, and the equilibrium price, quantity. Show the profit. Do all the plots give you the same answer?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 7PA

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