Homework#3 - Determine the type of the market

Homework#3

Question 1:

Using the data in the following table to:

1. Determine the type of the market (whether it is perfect competitive market or monopoly? and why?

2. Calculate MR, AR, MC, ATC.

3. Using marginal method, determine the producer equilibrium (the output and dollar amount at which the firm maximizes total profit).

4. Show your work on a graph to determine whether the firm makes profit (normal profit, super normal profit, or break even) or loss.

Q P TR TC MR AR MC ATC Profit or loss per unit

0 4 0 65

10 4 40 100

20 4 80 130

30 4 120 150

40 4 160 160

50 4 200 170

60 4 240 185

70 4 260 210

80 4 280 250

90 4 300 360