Figure 12-18 -Use the Figure Above to Answer the Following Questions

question 117

Essay

Figure 12-18

-Use the figure above to answer the following questions.
a.How can you determine that the figure represents a graph of a perfectly competitive firm? Be specific; indicate which curve gives you the information and how you use this information to arrive at your conclusion.
b.What is the market price?
c.What is the profit-maximizing output?
d.What is total revenue at the profit-maximizing output?
e.What is the total cost at the profit-maximizing output?
f.What is the profit or loss at the profit-maximizing output?
g.What is the firm's total fixed cost?
h.What is the total variable cost?
i.Identify the firm's short-run supply curve.
j.Is the industry in a long-run equilibrium?
k.If it is not in long-run equilibrium, what will happen in this industry to restore long-run equilibrium?
l.In long-run equilibrium, what is the firm's profit maximizing quantity?

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Definitions:

Job Order Cost System

An accounting system that accumulates costs for each individual job, used in production or services when products or services are distinct and made to order.

Client Engagement

The interaction and relationship between a service provider or business and its clients, often aiming at long-term cooperation.

Lawyer Time

The hours or time spent by a lawyer or legal professional in providing legal services to clients, which is often billed on an hourly basis.

Job Order Costing System

A method of assigning production costs to individual units or projects based on the specific materials and labor they require.