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BUSHMAN Ltd partnered with several private pharmacies to distribute its products drugs to patients. As a Junior Economist you were given the following data to determine the financial strength of the three firms below.
Partner 1
The table below shows the total cost and revenue of a pharmacy.
Quantity TR TC
0 0 101 13 132 22 173 27 224 28 285 25 35
a) Use the data to complete table showing the P, MR, ATC, AVC and MC for each output level.
b) Use the data to draw the firm's profit maximizing graph.
c) What is the profit-maximizing level of output and price?
d) Is the firm earning a positive or a negative profit? Show the firm's profit (or loss) on the graph (in part b).
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