Econ 111: Principles of Economics - Accelerated Treatment - Quiz 4
1. Given all the information in the total product (TP) curve presented here, sketch the average and marginal product curves in the area directly underneath it.
![354_Figure.png](https://secure.tutorsglobe.com/CMSImages/354_Figure.png)
2. Given all the information in the total cost (TC) curve presented here, sketch the average and marginal cost curves in the area directly underneath it.
![1870_Figure1.png](https://secure.tutorsglobe.com/CMSImages/1870_Figure1.png)
3. The following graph gives information about the marginal cost (MC), average total cost (ATC) and average variable cost (AVC) for a perfectly competitive firm A that faces a market price p* for its product.
![1116_Figure2.png](https://secure.tutorsglobe.com/CMSImages/1116_Figure2.png)
a) Show the output level that maximizes profits for firm A, and explain briefly (2-3 sentences) why you picked that quantity.
b) Answer with one sentence: Is the firm enjoying profits or losses at the equilibrium output level? WHY?