Reference no: EM131295547
Assignment
Answer all of the following questions in Microsoft Word file with complete questions and answers and attach it.
1. Each of the following situations could exist for a firm in the short run. In each case, indicate whether the firm should produce in the short run or shut down in the short run, or whether additional information is needed to determine what it should do in the short run.
a. Total cost exceeds total revenue at all output levels.
b. Total variable cost exceeds total revenue at all output levels.
c. Total revenue exceeds total fixed cost at all output
d. Marginal revenue exceeds marginal cost at the current output level.
e. Price exceeds average total cost at all output levels.
f. Average variable cost exceeds price at all output levels.
g. Average total cost exceeds price at all output levels.
2. Answer the following questions on the basis of the monopolist's situation illustrated in the following graph.
a. At what output rate and price does the monopolist operate?
b. In equilibrium, approximately what is the firm's total cost and total revenue?
c. What is the firm's economic profit or loss in equilibrium?
d. Can a monopolistic competitive firm can be illustrated through this graph?
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