Microeconomics,, 16th Canadian Edition

b. Compute average and marginal revenue for each level of

output. Fill in the table. (Remember to compute marginal

revenue between successive levels of output.)

c. Explain why, for a perfectly competitive firm,

d. Plot the TR, MR, and AR curves on a scale diagram. What
is the slope of the TR curve?
12. The diagram below shows the various short-run cost curves for a
perfectly competitive firm.

Market

Price ($)

Firm’s

Output

Is Price

ATC?

Is Price

AVC?

Are Profits

Positive?

$3 — — — —

4 — — — —

AR=MR=p.

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