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Consider the following table representing the market for a new PC game 'Fortnightly'. This game is produced exclusively by a software company called ECF1100 Pty
Consider the following table representing the market for a new PC game 'Fortnightly'. This game is produced exclusively by a software company called ECF1100 Pty Ltd, thanks to an exclusive copyright having been obtained by lobbying the government minister for industry and development Mr Eco Stuff. 0:29:11\" Price Total cost 0 $200 $0 1000 $190 $50,000 2000 $180 $100,000 3000 $170 $150,000 4000 $160 $200,000 5000 $150 $250,000 6000 $140 $300,000 7000 $130 $350,000 8000 $120 $400,000 9000 $110 $450,000 10000 $100 $500,000 1 1000 $90 $550,000 12000 $80 $600,000 a) Using the table above roughly illustrate what the market demand, m, ATC, and m functions would look like (you must show the XY intercepts of the MR function to get 0.25 marks for the MR function) Costs and The firm maximises revenue profit by producing the quantity at which MC marginal cost equals marginal revenue. MC2 ATC P = MR1 = MR2 P = AR = MR . . . AVC MC1 Q1 QMAX Q2 QuantityPrice MC P2 ATC P1..... AVC 0 Q1 Q2 Quantity
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