Description
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 are not in pure competition. Some numbers may be rounded.
Table 1 | |||||||
Output | Average Fixed cost | Average Variable Cost | Average Total Cost | Marginal Cost | Price | Total Revenue | Marginal Revenue |
0 | $ 345.00 | ||||||
1 | $ 180.00 | $ 135.00 | $ 315.00 | $ 300.00 | |||
2 | $ 90.00 | $ 127.50 | $ 217.50 | $ 249.00 | |||
3 | $ 60.00 | $ 120.00 | $ 180.00 | $ 213.00 | |||
4 | $ 45.00 | $ 112.50 | $ 157.50 | $ 189.00 | |||
5 | $ 36.00 | $ 111.00 | $ 147.00 | $ 165.00 | |||
6 | $ 30.00 | $ 112.50 | $ 142.50 | $ 144.00 | |||
7 | $ 25.71 | $ 115.70 | $ 141.41 | $ 126.00 | |||
8 | $ 22.50 | $ 121.90 | $ 144.40 | $ 111.00 | |||
9 | $ 20.00 | $ 130.00 | $ 150.00 | $ 99.00 | |||
10 | $ 18.00 | $ 139.50 | $ 157.50 | $ 87.00 |
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 the profit maximizing, or loss minimizing level of output.
- Define a normal profit and an economic 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 of market structure could 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.
"Quotations, paraphrases, and ideas you get from books, articles, or other sources of information should be cited using APA style."
Explanation & Answer
Hello, please check the answer. Ask for clarifications if you deem it necesary. Thanks.
1
Running Head: MARKET FORMS
ACCOUNTING
Student's name
Subject
Instructor's name
Date
2
MARKET FORMS
MARKET FORMS
Outpu
Average
Average
Average
Margina
t
Fixed Cost
Variable
Total Cost
l Cost
Price
Cost
0
Total
Marginal
Revenu
Revenue
e
$0.00
$0.00
$315.00
$354.0
0
0
$300.00
$300
$498.00
$198
$639.00
$141
$756.00
$117
$825.00
$69
$864.00
$39
$882.00
$18
$888.00
$6
$891.00
$3
0
1
$180.00
$135.00
$315.00
$315.00
$300.0
0
2
$90.00
$127.50
$217.50
($97.50)
$249.0
0
3
$60.00
$120.00
$180.00
($37.50)
$213.0
0
4
$45.00
$112.50
$157.50
($22.50)
$189.0
0
5
$36.00
$111.00
$147.00
($10.50)
$165.0
0
6
$30.00
$112.50
$142.50
($4.50)
$144.0
0
7
$25.71
$115.70
$141.41
($1.09)
$126.0
0
8
$22.50
$121.90
$144.40
$2.99
$111.0
0
9
$20.00
$130.00
$150.00
$5.60
$99.00
3
MARKET FORMS
10
$18.00
$139.50
$157.50
$7....