Exhibits

Email X To: Andrew Austin, Accounting Associate From: Laura Fuller, Accounting Manager RE: Economic Profits Hi Andrew, Per our discussion, I am attaching the short- and long-run supply and demand curves of our four products. Please calculate their economic profits. Below are the meanings of the terms we use in the curves. Term Meaning ATC Average Total Cost MC Marginal Cost MR Marginal Revenue STD Short-Term Demand LTD Long-Term Demand Let me know if you have any questions. Thank you, Laura Fuller Accounting ManagerSupply and Demand Curves (Read Only) Product I Short-run Long-run Price MC Price MC ATC ATC 80 MR/STD 70 80 MR/LTD 350 450 500 600 Quantity 500 QuantityProduct II Short-run Long-run Price Price MC 125 110 MC 100 80 ATC ATC 75 60 70 55 60 50 40 50 LTD IMR STD MR 550 650 750800 Quantity 550 650 750800 QuantitySupply and Demand Curves (Read Only) Product Ill Short-run Long-run Price MC Price MC ATC ATC 145 130 100 115 90 100 90 80 80 55 - - MR STD MR LTD 600 700 800 900 1000 Quantity 700 900 1000 QuantityProduct IV Short-run Long-run Price Price MC MC ATC ATC 130 125 190 120 180 115 170 110 160 150 100 130 80 100 MR STD MR LTD 500 600 800 900 1000 Quantity 600 700 900 1000 1100 QuantityA company sells tour products in four different markets. each with its own market structure. For each of the following products listed in column A, select from the option list provided the relevant market structure {column B}, and enter the appropriate amount in the associated cell for shortrun [column C] and longrun {column DJ prot-maximizing economic profits. Enter all amounts as whole numbers. Use a leading minus sign {} to denote an}r tosses. If the amount is zero. enter a zero {U}. A B C D Short-run prot- Long-run prot- i Product Market structure maximizing economic maximizing economic prot {loss} proflt [loss] 5 2 | 3 II E 4 III E 123 123 s w E 11' 11' Select an option below O Pure competition O Monopoly O Monopolistic competition O Oligopoly RESET CANCEL ACCEPT