# 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.

 Company Market Share Coca-Cola 37% Pepsi-Co 35 Cadbury Schweppers 17 Other 11

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