Question

Consider the following data:

(a) For each level of output, calculate/state MC, TR, AR and MR (b) Graph the MC and MR curves (c) Would the profit-maximising firm produce (i) 2 units of output, OR (ii) 4 units ofoutput? Explain (hint - this could be a trick question!)[4 marks] (d) Calculate the amount of profit or loss earned by the profit-maximising firm (e) State a level of output at which the firm earns negative economic profit, and-calculate this amount[3 marks]

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