Why would firm decide to produce instead of shut-down

Reference no: EM13765930

Perfect Competition and Monopoly

Complete the table below and answer the corresponding questions.

Price	Output	Total Revenue	Marginal Revenue	Total Cost	Marginal Cost	Average Total Cost	Profit
30	0			100
30	1			128
30	2			150
30	3			165
30	4			185
30	5			210
30	6			245
30	7			290
30	8			350

Q1. Does the table depict a firm facing perfect competition or a monopolistic firm? Explain.

Q2. According to the table, what are this firms fixed costs?

Q3. What is the profit maximizing level of output?

Q4. What is the maximum profits this firm can attain?

Q5. Why would this firm decide to produce instead of shut-down?

Q6. What would happen in the long-run to get this firm back to the long-run equilibrium?

Complete the table below and answer the corresponding questions.

Price	Output	Total Revenue	Marginal Revenue	Total Cost	Marginal Cost	Average Total Cost	Profit
75	0			100
70	1			128
65	2			150
60	3			165
55	4			185
50	5			210
45	6			245
40	7			290
35	8			350

Q1. Does the table depict a firm facing perfect competition or a monopolistic firm? Explain.

Q2. According to the table, what are this firms fixed costs?

Q3. What is the profit maximizing level of output?

Q4. What is the maximum profits this firm can attain?

Q5. Why would this firm decide to produce instead of shut-down?

Q6. What did this business to decrease their losses?

Reference no: EM13765930

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