Question 1 (a) The cost and revenues of a firm is as follows : Quantity | Price (RM) | Total Revenue (RM) | Marginal Revenue (RM) | Total Cost (RM) | Marginal Cost (RM) --- | --- | --- | --- | --- | --- 0 | 40 | | | 50 | 1 | 40 | | | 74 | 2 | 40 | | | 94 | 3 | 40 | | | 117 | 4 | 40 | | | 142 | 5 | 40 | | | 172 | 6 | 40 | | | 212 | i. Complete the table. (6 marks) ii. Is this firm operating in Perfect Market or Imperfect Market? Justify your answer. (3 marks) iii. Identify equilibrium output and price. (3 marks) iv. Calculate profits at equilibrium output.
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To calculate marginal revenue, we can use the formula: Marginal Revenue = Total Revenue (current quantity) - Total Revenue (previous quantity). To calculate marginal cost, we can use the formula: Marginal Cost = Total Cost (current quantity) - Total Cost Show more…
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