Consider the following data: quantity total cost total revenue 0 3 0 1 9 12 2...

Consider the following data:

quantity	total cost	total revenue
0	3	0
1	9	12
2	16	24
3	24	36
4	33	48
5	45	60
6	58	72
7	74	84

a. Calculate the profit for each quantity. How many units should this firm produce to maximize profit?

b. Calculate MR for each quantity. Calculate MC for each quantity. Does the profit-maximizing formula support your answer from part a?

c. Is this firm perfectly competitive? How do you know? Is it in the long-run equilibrium? How do you know?

d. Depict the graph.

Expert Solution

Rahul Sunny answered 2 years ago

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Price ($) Quantity Demanded Quantity Supplied 0 25 0 1 21 1 2 17 3 3...

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