Use the figure to answer the following 4 questions.

The figure shows the demand and cost curves facing a firm with market power in the short run.

The profit-maximizing (or loss-minimizing) level of output is units.

The firm will sell its output at a price of $ .

The firm earns profits of $ .

When in short-run equilibrium, if the firm sells another unit of output total revenue will by $ .

The figure above shows cost curves for a perfectly competitive firm.

Suppose that market price is $990. A firm producing 3,350 units of output should produce units of output instead, to earn profits of $ .

A profit-maximizing firm will break even when market price is $ .

If market price is $110, a profit-maximizing firm will produce units of output and earn profits of $ .

The graph shows the short-run cost curves for a firm in a perfectly competitive market.

If market price is $72:

 - profit-maximizing level of output is .

 - Total Cost is $ .

 - Total Fixed Cost is $ .

 - for the profit maximizing output the firm should hire units of labour.

 - the firm's profit is $ .

If market price is $24

:

 - profit-maximizing level of output is .

 - the firm's profit is $ .

The figure shows MC, MR and ATC curves for Joe’s Good Enough Cafeteria, a firm that operates in a competitive market.

If the firm is producing 75 units of output, increasing output by one unit would the firm’s profit by $

If the firm is producing 105 units of output, increasing output by one unit would the firm’s profit by $

Joe’s SHORT RUN equilibrium quantity is equal to and profit is $ .

Joe’s LONG RUN equilibrium quantity will be and profit will be $ .

The graph shows average and marginal cost curves for a typical firm in a perfectly competitive industry in LONG–RUN  equilibrium.

The long-run equilibrium price of the product is $  .

In long-run equilibrium the firm will produce units.

In long-run equilibrium the firm will earn $  economic profit.

Answer the following 7 questions using the figure:

The graph on the left shows the short-run cost curves for a firm in a perfectly competitive market.

 1)  Marginal Revenue for the FIRM from selling the 180^th unit of output is $ .

 2)  In order to maximize profit, the firm should produce units.

 3)  Total Revenue at the profit-maximizing level of output is $ .

 4)  Total Cost at the profit-maximizing level of output is $ .

 5)  The maximum profit the firm can earn is $ .

 6)  The number of firms in this market is .

 7)  What do you expect to happen in the long-run?

The next 3 questions refer to the following total cost schedule for a competitive firm:

If market price is $165, the maximum profit the firm can earn is $ .

If market price is $130, the maximum profit the firm can earn is $ .

If market price is $105, the firm will produce units of output.

The next 3 questions refer to the following:

The table below shows a competitive firm's short-run production function.

The 7^th unit of labour adds $ to the firm's total revenue.

If the wage rate is $250, the firm will employ units of labour.

If market price for the firm's product decreases to $2, at the same wage rate of $250 the firm will earn a profit of $ .

The graph shows demand and marginal cost for a perfectly competitive firm.

If the firm is producing 500 units of output, increasing output by one unit would the firm’s profit by $ .

If the firm is producing 1250 units of output, increasing output by one unit would the firm’s profit by $ .

The next  7 

questions refer to the following:

Q_D = 55 260 – 0.50P_X + 60P_Y – 0.05M

Q_S = 53 670 + 0.25P_X + 75P_R – 140w

where P_X is the price of X,  P_Y is the price of good Y,  M is Income,  w is wage rate and P_R is the price of a resource R.

The forecast for the next year is   P_Y = $105;   M = $75 000;   w = $45;   P_R = $135.

Cost conditions of an individual business are estimated to be:

TC = 3.5Q² + 1 680

MC = 7Q