Scribd
Upload
14 views2 pages

Tutorial Chapter 6 - Calculate Answer

Uploaded by

Sakinah Aryani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
14 views2 pages

Tutorial Chapter 6 - Calculate Answer

Uploaded by

Sakinah Aryani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

NUR SAKINAH ARYANI BINTI SUZY @ QUZIHARRIS 62212323152

TUTORIAL CHAPTER 6
QUESTION 1

The diagram below shows the profit maximizing for a monopoly firm.

Revenue / Price / Cost (RM)


i MC= marginal cost

30 ii
AC= average cost

25

16
20

AR
MR
Output (units)
20 25

a. Name the curves. (2 marks)

b. What is the profit maximizing output and price for this firm? (2 marks)
P= RM20 , Q= 25units
c. Calculate total revenue and total cost for this firm. (4 marks)
TR = P x Q TC = AC x Q
= 20 x 25 = 500 = 30 x 20 = 600
d. Calculate the profit or loss earn by this firm. State the type of profit. (2 marks)
Tx = TR - TC
= 500 - 600
= -100

= the firm loss RM100 . Type of profit is subnormal profit


QUESTION 2

The diagram below shows the profit maximizing for a firm.

RM AC

MC

180

170 MR = AR

Quantity (unit)
0 200 230

a. In which
50 market structure is this firm operating in? (1 mark)
perfect competition market structure
b. What is the profit maximizing output and price for this firm? (2 marks)
P= 200 units , Q= RM170
c. Calculate total revenue and total cost for this firm. (2 marks)
TR = P x Q TC = AC x Q
= 200 x 170 = 34000 = 180 x 200 = 36000
d. Calculate the profit or loss earn by this firm. State the type of profit. (3 marks)
Tx = TR - TC = subnormal profit
= 34000 - 36000 = -2000
e. Is this firm operating in short run or long run? Why? (2marks)
short-run. because have loss.

You might also like