A firm in perfect competition has cost curves as shown in the diagram below.

a)Is the AFC curve shown in the above diagram? 2 Mark

b)Regarding costs, what is the difference between the short run and the long run?2Marks

c)How can you tell if these cost curves are for the short run or the long run? 2 Marks

d)Calculate the following, what is:

1.AVC at 6,000 units of output? 2 Marks

2.ATC at 6,000 units of output? 2 Marks

3.If the Market Price is $9/unit, what is the profit on each unit sells? 2 Marks

BECN 150 ONL - Microeconomics Assignment No. 3: 45 Marks - 5%, Due Date April 4, 2020 Question 1 - 12 Marks A firm in perfect competition has cost curves as shown in the diagram below. a) Is the AFC curve shown in the above diagram? 2 Mark b) Regarding costs, what is the difference between the short run and the long run? 2 Marks c) How can you tell if these cost curves are for the short run or the long run? 2 Marks d) Calculate the following, what is: 1. AVC at 6,000 units of output? 2 Marks 2. ATC at 6,000 units of output? 2 Marks 3. If the Market Price is $9/unit, what is the profit on each unit sells? 2 Marks 12 Marks Page 1 of 2 Page 2 of 2