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4. The cost and revenues of 2 firms are as follows : Output Price TR MR AR TC MC MR 0 0 50 198 589

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4. The cost and revenues of 2 firms are as follows : Output Price TR MR AR TC MC MR 0 0 50 198 589 2 392 660 9 1638 1168 10 1800 1330 11 1958 1550 12 2112 1850 13 2262 2262 Qty Price TR AR MR TC AC MC 40 20 2 36 40 3 32 58 4 28 72 5 24 80 6 20 84 Complete the tables above. Identify equilibrium output and price - and profits earned at equilibrium output. What is the difference between both firms? How can you tell? (25 marks)

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