B GRAPHS

1. Graph 1:

Plot price

Question

B. GRAPHS

1. Graph 1: Plot price

(P) and marginal revenue (MR) with quantity produced (QF) on the

horizontal axis.

2. Graph 2: Plot total revenue (TR) and total costs (TCwith quantity produced (QF) on the

horizontal axis.

3. Graph 3: Plot price (P), marginal revenue (MR), marginal cost (MC) and average total

cost (ATC) with quantity produced (QF) on the horizontal axis.

C. PROBLEMS

  1. From Graph 1describe the relationship between the firm’s Demand Curve and its Marginal Revenue Curve. Answer:A. PRODUCTION COSTS
    Assume your business sells its products in a Monopoly Market. Let’s say that fixed costs (FC) are $47.
    AFC
    AVC
    ATC
    per
    QFIRM
    per
    Price
    per
    FC
    VC
    Total
    TC
    MC
    unit
    unit
    unit
    TR
    MR
    Profit
    0
    $35.00
    $0.00
    $33.00
    $1.00
    $30.00
    $3.00
    $27.00
    $7.00
    $24.00
    $15.00
    $21.00
    $31.00
    6
    $18.00
    $55.00
    $15.00
    $95.00
    $12.00
    $151.00
    9
    $9.00
    $231.00
    Economics