Economics 1

1-Below is a demand schedule facing an individual firm. Complete the table by computing average revenue, total revenue, and marginal revenue. Then answer the following two questions: (a) How can you tell whether a firm is operating in a market that is purely competitive? (b) What relationship exists between average revenue and marginal revenue? Quantity Average Total Marginal Price demanded revenue revenue revenue $30 30 30 30 30 30 30 6 2-Use the graph below to identify: (a) break-even points; (b) the profit-maximizing level of output; and, (c) letters showing largest difference between total revenue and total costs and the output level. S TO TR Go Q, Q2 0, Q 3-What are the major characteristics of pure monopoly