Answer to Question #97338 in Macroeconomics for nur adawiyah

Question

1) i. A perfectly competitive firm produces 1,000 units of burger in marginal revenue is RM6. Calculate the firm's average fixed cost, long-run average cost, total and total profit.
ii. Plot a graph for a competitive market in the short run
2) For each of the statements below, plot a graph to show the firm's profit or loss (if any).
i. A profit-maximizing monopoly in the short run making a positive economic profit.
ii. A loss-minimizing monopoly in the short run which has shut down.
iii. A loss-minimizing monopoly in the short run that is operating but losing money.

Answer 1

total fixed costs are the costs that an enterprise has when output is zero.

Total variable costs are the difference between total and total fixed costs. Marginal cost is the additional cost of producing an additional unit of output.

additional information is needed to calculate average fixed cost, long-run average cost, total and total profit.

Graph 1

Graph 2

Graph 3

https://slideplayer.com/slide/4452948/