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Question 1 The table below shows the cost and revenue information of a firm. Output (units) Price (RM) Total Cost (RM) Total revenue (RM) Marginal
Question 1
The table below shows the cost and revenue information of a firm.
| Output (units) | Price (RM) | Total Cost (RM) | Total revenue (RM) | Marginal Cost (RM) | Marginal Revenue (RM) |
| 0 | 14 | 10 |
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| 1 | 14 | 14 |
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| 2 | 14 | 22 |
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| 3 | 14 | 34 |
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| 4 | 14 | 48 |
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| 5 | 14 | 64 |
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| 6 | 14 | 82 |
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(a) Complete the table above. [9 marks]
(b) Determine the price and output at equilibrium. [6 marks]
(c) Calculate the profit or loss at equilibrium. [4 marks]
(d) Is this firm in the short-run or long-run? Explain your answer. [5 marks]
(e) To what type of market structure does this firm belong? Why do you say so? [6 marks]
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