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Economics Assignment: Principles of Economics

   

Added on  2020-05-28

6 Pages678 Words70 Views
Running head: PRINCIPLES OF ECONOMICSPRINCIPLES OF ECONOMICSName of the StudentName of the UniversityAuthor’s Note

1PRINCIPLES OF ECONOMICSTable of ContentsIntroduction......................................................................................................................................3Question1.........................................................................................................................................3Question 2........................................................................................................................................4Conclusion.......................................................................................................................................5References........................................................................................................................................6

2PRINCIPLES OF ECONOMICSIntroductionThe report focuses on the evaluation of cost and revenue of a particular firm at each levelof output. The profit maximizing level of output is also discussed in this report. The cost andrevenue curves are also plotted in the graph in this study. This study also highlights about whythe economist study perfect competition given that this type of competition does not occur in thereal world.Question1The table below reflects Total cost (TC), marginal Cost (MC), Total Revenue (TR) andMarginal Revenue (TR) for each level of output. Total cost indicates the total expenditure that isincurred in reaching specific output level (Edwards 2017). It is calculated by multiplying averagecost to total output. Marginal cost (MC) refers to change in total cost that occurs from producingone extra item. TR refers to total receipts a retailer gains from selling products to the purchasers.Given the AR, the TR is calculated by multiplying AR with output. As MR refers to the extrarevenue that is produced by raising goods sales by one unit, it is calculated by change in TR tototal output.OutputACTCMCARTRMR1101015152816614.529143721514421346.325.24.213.5541256304.813651166.136.66.612.5751076.545.58.91284987.257.612.111.5928987214.411997109901810.51056

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