The following is a graph of Albert’s Sweet Potato Farm located in Bensenville Arkansas which is a perfectly

Question

The following is a graph of Albert’s Sweet Potato Farm located in Bensenville, Arkansas which is a perfectly

competitive firm.

Answer the following questions based on this graph:

a. What is the profit maximizing price for this firm? Profit maximizing output?

b. Will Albert’s Sweet Potato Farm earn a profit?

c. If Albert’s Sweet Potato Farm is earning a profit, how much profit is being earned?

d. What is the amount of marginal revenue? Average revenue?

e. What is the amount of average total cost (ATC)?

f. How much total profit is being earned by Albert’s Sweet Potato Farm? Total cost?

g. What are the characteristics for a perfectly competitive firm?

Microeconomics