Question: Question 2 The table below shows the average cost {AC} for a purelv competitive market. The average revenue [ARI is constant at F-il'v15 per unit

Question 2 The table below shows the average cost {AC} for a purelv competitive market. The average revenue [ARI is constant at F-il'v15 per unit and the rm' 5 total xed cost [TFC] is Fttvtd. Total Revenue Average Cost Total Cost Marginal Coat Marginal {RM} {RM} {RM} {RM} Revenue {RM} a] Fill in the values fortotai revenue {TR}, total cost [TC] and marginal oost {MC} in the column provided. b} Determine the profit maximizing output. c} Show the equilibrium of the firm in a diagram. d} if the average revenue fails to RM3 per unit, calculate the rm's new prot or loss at the equilibrium. el Based on Iyour answer in part {d}. should the rm continue or stop the production? Justifv
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
