Is this a perfectly competitive firm? If not, what type of firm, do you think it

Question

Is this a perfectly competitive firm? If not, what type of firm, do you think it is? Why do you say that?

Is this a perfectly competitive firm? If not, what type of firm, do you think it is? Why do you say that?

What would be the firm’s output level and price? Why, what rule does the firm use to pick its output?

Quantity Price Fixed Costs Labor Variable Cost Total Costs Avg Fixed Cost Avg Variable Cost Avg Total Costs Marginal Cost Total Revenue Marginal Revenue Profit Q P FC L VC TC AFC AVC ATC MC TR MR given given given given W*L FC+VC FC/Q VC/Q TC/Q TC/Q P*Q TR/Q TR - TC 0 - $2,500,000 0 $-   $2,500,000 - - - - 0 - $(2,500,000) 3000 500 $2,500,000 2500 $500,000 $3,000,000 $833 $167 $1,000 167 $1,500,000 $500 $(1,500,000) 7000 470 $2,500,000 4000 $800,000 $3,300,000 $357 $114 $471 75 $3,290,000 $448 $(10,000) 11000 440 $2,500,000 5000 $1,000,000 $3,500,000 $227 $91 $318 50 $4,840,000 $388 $1,340,000 15000 410 $2,500,000 5500 $1,100,000 $3,600,000 $167 $73 $240 25 $6,150,000 $328 $2,550,000 18000 380 $2,500,000 6500 $1,300,000 $3,800,000 $139 $72 $211 67 $6,840,000 $230 $3,040,000 20400 350 $2,500,000 8000 $1,600,000 $4,100,000 $123 $78 $201 125 $7,140,000 $125 $3,040,000 22500 320 $2,500,000 10000 $2,000,000 $4,500,000 $111 $89 $200 190 $7,200,000 $29 $2,700,000 24280 290 $2,500,000 12500 $2,500,000 $5,000,000 $103 $103 $206 281 $7,041,200 $(89) $2,041,200 25500 260 $2,500,000 15500 $3,100,000 $5,600,000 $98 $122 $220 492 $6,630,000 $(337) $1,030,000 26500 230 $2,500,000 19000 $3,800,000 $6,300,000 $94 $143 $238 700 $6,095,000 $(535) $(205,000) 27300 200 $2,500,000 25000 $5,000,000 $7,500,000 $92 $183 $275 1500 $5,460,000 $(794) $(2,040,000) 28000 170 $2,500,000 32000 $6,400,000 $8,900,000 $89 $229 $318 2000 $4,760,000 $(1,000) $(4,140,000)

Explanation / Answer

Answer

this is not a perfect competitive firm as price are not same at each output level but it is decreasing so it can be monopoly and monopolistic firm as if the firm want to sell more quantity of product they have to reduce the price.

firms output level is determined where MR= MC ( marginal revenue = marginal cost )

= 125=125

so price will be = $ 350

output will be = 20400

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