Figure 12-18 -Refer to Figure 12-18.Use the Figure Above to Answer the Above

question 223

Essay

Figure 12-18

-Refer to 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:

Peptic Ulcer

A sore that develops on the lining of the stomach, small intestine, or esophagus caused by the action of stomach acid.

Antacids

Substances that neutralize stomach acid to relieve heartburn, indigestion, and stomach upset.

Antibiotics

Medicinal substances used to kill or inhibit the growth of bacteria to treat and prevent bacterial infections.

Emulsification

The process of breaking up and evenly dispersing fat or oil in a liquid to form a stable mixture, such as in making mayonnaise or vinaigrettes.