For this assignment you will do a significant portion of work in MS Excel and import it into an MS Word document for submission. You will use the data below to address Price and Output decisions faced by firms that arenotin pure competition. Some numbers may be rounded.
Average Fixed cost
Average Variable Cost
Average Total Cost
Address the following:
- Complete Table-1. Summarize your calculations.
- Prepare a graph showing:
- Average Fixed Costs
- Average Variable Costs
- Average Total Costs
- Marginal Revenue
- Marginal Costs
- Using the data in the table and on your graph, explain theprofit maximizing, orloss minimizinglevel of output.
- Define anormal profitand aneconomic profit. Are normal profits being earned in this example? Are economic profits present for this firm in this example? Explain your answers.
- Given the data in the table and the graph, what type ofmarket structurecould this be in the short run? Explain your answers.
- If the data in Table-1 represents the long run, what type of firm must this data represent? Explain your answers.
Save your MS Word document using the filenameLastnameFirstInitial_M4A2
and submit it to theM4: Assignment 2 Dropbox
byWednesday, February 25, 2015
.Quotations, paraphrases, and ideas you get from books, articles, or other sources of information should be cited usingAPA style
. Help with citing sources can be found through theAcademic Resources
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