Maths

Please answer the following questions.  Submit as a Microsoft Word® document to the Dropbox when completed.

1.    How does the demand curve faced by a perfectly competitive firm differ from the market demand curve in a perfectly competitive market?  Explain.

2.    A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firm’s product is $140.

            Output               FC                   VC              TC             TR     Profit/Loss

              0                      $90               $    0               ___           ___           ___

         1                                            90                90             ___           ___       ___

         2                                            90               170           ___           ___       ___

         3                                            90               290           ___           ___       ___

         4                                            90               430           ___           ___       ___

         5                                            90               590           ___           ___       ___

         6                                            90               770           ___           ___       ___

              a.       Complete the table.

              b.       What level of output should the firm produce to maximize profits?

3.    How does the demand curve faced by a monopoly differ from the demand curve faced by a perfectly competitive firm?  Explain.

4.    The following table provides market share information about the soft-drink industry. 

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