The diagram below shows the information on price, output, cost and revenue of a firm in a perfect competition market in a short-run.

Based on the diagraM,

i) What is the equilibrium output level?

(6 marks)

ii) What is the total revenue when firm is producing at the equilibrium output level?

(6 marks)

iii) What is the total cost when firm is producing at the equilibrium output level?

(6 marks)

iv) What is the value of profit/loss that the firm is experiencing?

(6 marks)

v) Based on the answer (iv), will the firm continue to operate or shutdown?

Price/Revenue/Cost (RM) MC ATC AVC P = MR = AR 4 Quantity (unit) 25 30 Diagram 1