Analytical Exercise Using only the information provided and your knowledge of competition types, costs, and revenues complete
Question:
Analytical Exercise
- Using only the information provided and your knowledge of competition types, costs, and revenues complete the table below. *After completing, use your solutions to answer the questions that follow.
| Q | P | FC | VC | AVC | TC | ATC | MC | TR | MR | Profit |
| 0 | $15.00 | |||||||||
| 1 | $15.00 | $30.00 | $5.00 | |||||||
| 2 | $15.00 | $19.50 | ||||||||
| 3 | $15.00 | $16.67 | ||||||||
| 4 | $15.00 | $10.00 | ||||||||
| 5 | $15.00 | $12.00 |
2. Describe the type of market this firm is operating in (Perfect competition, Monopolistic Competition, Oligopoly, Monopoly). Explain.
3. What is the profit maximizing quantity? What is the firm's total profit? Explain.
4. Is this firm operating in the Short-run or Long-run? Explain.
5. In your own words, describe what will happen in this market in the long run. What will happen to this firm's profits when moving from the short run to the long run? Be specific.
6. Using the numbers you found in the above table draw a graph depicting this firms demand curve, marginal cost curve, and average total cost curve. Be sure to clearly label the axes, profit maximizing price, and profit maximizing quantity.
Expert Answer:
Auditing A Risk Based Approach to Conducting a Quality Audit
ISBN: 978-1305080577
10th edition
Authors: Karla Johnstone, Audrey Gramling, Larry E. Rittenberg
