Name: Đỗ Thị Minh Lý

Student ID: HS160932

ECON 111: MICROECONOMICS PRINCIPLES

INDIVIDUAL ASSIGNMENT

Deadline: Midnight, March 5th, 2022. Submissions accepted only via Google Classroom.

You get 2 points for free by just submitting this assignment, meaning even if you got all the
wrong answers, your minimum score is 2 points.

Question 1:
Given the following information about a firm under perfect competition:

Q TC
0 50
10 125
12 135
14 140
16 150
17 160
18 175
20 215

(a) Calculate the firm’s MC, ATC, AFC, and AVC, for the given levels of output. (1)
 Q TC ATC AFC AVC MC MR

0 50 na na na

10 125 12,5 5 7,5 7,5 20

12 135 11,25 4,17 7,083 5 20

14 140 10 3,57 6,43 2,5 20

16 150 9,375 3,125 6,25 5 20

17 160 9,41 2,94 6,47 10 20

18 175 9,72 2,78 6,94 15 20

20 215 10,75 2,5 8,25 20 20

(b) If the price of the product is $20, at what output will the firm maximize its profits? (1)
(c) Calculate the profits at the above profit-maximizing output? (1)
(d) At what price should the firm shut down operations in the short run? (1)
(e) At what price should the firm enters the market in the long run? At what price should the firm
exits the market in the long run? (1)

Question 2 A monopoly faces a demand curve and has total costs as follows

Quantity Price Total Cost

1 20 30

2 18 32

3 15 36

4 12 42

5 9 50

6 7 63

7 4 77

a) Calculate marginal cost at each output level. (1)

b) Calculate total revenue at each output level. (1)
c) Calculate profit/loss at each output level.(1)

Quantity Price Total Cost MR TR PROFIT LOSS MC

1 20 30 20

2 18 32 16 36 2

3 15 36 -6 30 4

4 12 42 18 48 6

5 9 50 -3 45 8

6 7 63 18 63 13

7 4 77 -35 28 14