Plz help out! Thx a lot iPad 7:18 PM owLuwo.ca 6 of 6 Answer the following quest

Question

Plz help out! Thx a lot iPad 7:18 PM owLuwo.ca 6 of 6 Answer the following questions about the graph shown below If the price is $2, how much will the firm produce? 2. If marginal revenue is $2, how much will the firm produce? 3. If the price is SI, how much will the firm produce? What must the price be for the firm to make a profit? 5. What is the marginal revenue if the firm is producing an output of 6? 6. If average revenue is $3, how much will the firm produce? 7. What is the price if the firm is producing an output of 6? 8. Is the firm making a profit if the price is $4? How much of a profit or loss is it making? FC

Explanation / Answer

Q1
Answer
The firm produces at MC=P
it is at
Q=3
Q2
The P and MR are same in perfect competition so
Q=3
Q3
MC=P
Q=0
because the firm will shut down for the price below average variable cost.
Q4
The firm earns profit above minimum average cost
Min(ATC)=$3.6
the firm earn the profit at
P>3.6

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