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3. Based on the diagram, answer the following questions. Revenue/cost MC AVC ??, 26 AR = MR 23 20 0 0 20 Output (i) Total revenue (TR) [2 marks) Total cost (TC) [2 marks] (iii) Profit [3 marks) (iv) Type of profit is earned by this firm? Justify your answer. [4 marks) 4. The following graph shows the price, marginal cost and average cost curves for a firm. RM MC 15 ATC 9 9 7 AVC DD=MR Quantity (Units) 25 104 150 a) b) Identify the type of market structure the firm is operating in. Justify your answer. [2 marks] What is the profit maximizing price and output for this firm? [4 marks] Calculate the amount of profit or loss at the equilibrium point. State the type of profit. (4 marks) c)
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