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:

International Union

A coalition of national trade unions or organizations formed to promote common interests or engage in joint action on an international level.

Example

A representative instance or case used to illustrate or explain a concept, principle, or process.

Managerial Domination

A situation in which management exercises control or influence over decision-making processes, often at the expense of employee participation.

Co-Operative Programs

Educational or training programs designed to integrate classroom learning with practical work experience in a related field, often involving partnerships between educational institutions and employers.