Question:
Revenues And Costs
The following data refer to the revenue and costs of a firm.
Output Total revenue
|
0
|
Total costs
110
|
|
1
|
50
|
140
|
|
2
|
100
|
162
|
|
3
|
150
|
175
|
|
4
|
200
|
180
|
|
5
|
250
|
185
|
|
6
|
300
|
194
|
|
7
|
350
|
219
|
|
8
|
400
|
269
|
|
9
|
450
|
325
|
|
10
|
500
|
425
|
|
|
Required
- Calculate the marginal revenue for the firm and state which sort of market it is operating in.
- Calculate the firm's fixed costs and the marginal cost at each level of output
- What level of output will the firm aim to produce and what amount of profit will it
make at this level?
- Describe and explain the effect on the firm's output and profits of the entry of new producers into the industry.