1. Unit 3: Costs of Production and Perfect Competition
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ACDC Leadership 2015

2. Drawing side-by-side graph for perfectly completive industry and firm
Is the firm making a profit or a loss? Why? P S P MC
ATC
MR=D
$15
$15 D Q
5000 8 Q
Firm
(price taker)
Industry 2
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3. Which of the following is a correctly labeled graph for firm making economic profit?3
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4. #1 #3 #2 #4 ATC MC MC ATC PF MR=D MR=D Q Q QF QF MC ATC ATC MC MR=D
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5. Where is the profit maximization point? How do you know?
What output should be produced?
What is TR?
What is TC?
How much is the profit or loss?
Where is the Shutdown Point?
$25 20 15 10 MC
MR=P
ATC
Cost and Revenue
AVC
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ACDC Leadership 2015