Question: Can you please solve this for me? Answer any three (3) of the following Roman numeral questions (I. II. III, IV}. Make sure you answer
Answer any three (3) of the following Roman numeral questions (I. II. III, IV\}. Make sure you answer all parts of each question you select. Do not answer more than three Roman numeral questions. I. (33 points) A perfectly competitive firm faces a market-determined price of $22 for its product, and its total cost for different quantities of output are shown in column (2) below. Answer questions (a through f ) below. The correct answer to each is worth five and one-half points. Calculate average total cost (ATC) and marginal cost (MC) in columns (3) and (4) for each quantity of output. Show your calculations. a. Briefly explain how you could determine the level of fixed cost for each level of output. b. Fill in columns 5 and 6 for marginal revenue (MR) and total revenue (TR). Briefly explain how you did your calculations. c. Draw the marginal cost, average total cost curve, and marginal revenue curve for the firm. d. Explain in one or two sentences how much output should the competitive firm produce? e. Fill in column (7) on total profit. Does your answer from column (7) agree with your answer to part e ? If not, explain why. f. Extra credit (5) points. Explain whether total profit is maximized at the same level of output at which profit per unit (also known as the 'profit margin') is maximized
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
