i. ii. The diagram below shows the short-run equilibrium of a firm. Price 111. 25 GN...

 

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i. ii. The diagram below shows the short-run equilibrium of a firm. Price 111. 25 GN Note: MC Marginal cost ATC= Average total cost DD = Demand 21 0 500 MC Calculate the firm's total revenue. ATC MR = AR = DD Quantity MR = Marginal Revenue AR = Average revenue Is this firm operating in the perfect competition, monopolistic competition, oligopoly, or monopoly market structure? Justify your answer. (3 mark) Which condition must be achieved for the firm to earn maximum profit? Justify your answer. (3 mark) i. ii. The diagram below shows the short-run equilibrium of a firm. Price 111. 25 GN Note: MC Marginal cost ATC= Average total cost DD = Demand 21 0 500 MC Calculate the firm's total revenue. ATC MR = AR = DD Quantity MR = Marginal Revenue AR = Average revenue Is this firm operating in the perfect competition, monopolistic competition, oligopoly, or monopoly market structure? Justify your answer. (3 mark) Which condition must be achieved for the firm to earn maximum profit? Justify your answer. (3 mark)

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