Cost and revenue curves for perfectly competitive firm

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Figure 1 is the cost and revenue curves for a perfectly competitive firm.

a. For this firm the profit maximizing output is _____and the profit maximizing price is_____.

b. Calculate is the total profit/loss for this firm.

c. Refer to figure 1 and your previous answers. Will the industry this firm operates in expand or contract in the future? Why or why not?

d. Refer to figure 1 and your previous answers. If these costs curves remained the same in the long run, this firm would produce ___ at a price of _____ in the long run and earn, ______ economic profit.

Reference no: EM131095642

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