Economics 3

Describe the four types of market (perfect competition, monopoly, monopolistic competition, oligopoly) and provide at least one example for each type

Explain the difference between variable and fixed costs and its relationship to the short and long run.

Using the data provided (see table below), expand the table by calculating the following cost, revenue, and profit/loss elements: (a) total fixed cost, (b) total variable cost, (c) total cost, (d) marginal cost, (e) average fixed cost, (f) average variable cost, (g) average total cost, total revenue, (h) marginal revenue, (i) profit or loss. Unit price is $7.50. Assume all units produced are sold.

For the cost table obtained in question 3, build the following graphs and answer the corresponding question:

a. Graph: total fixed cost, total variable cost and total cost. Why is there a straight line?

b. Graph: average fixed cost, average variable cost, average total cost. Why does the average variable cost curve show an increasing trend while the other two curves show a decreasing trend?

c. Graph: total variable cost, total fixed cost, total cost, revenue, profit or loss. How many units would you produce and why?

d. Graph: average total cost, marginal cost, marginal income. What is the optimum production level? Why? Is your answer the same as in previous question/graph?

Please use APA style and references.

Cost Table – questions #3 and #4
Units produced	Rent	Salaries	Other Exp.
	fixed	fixed	variable	variable
0	1,275	150	0	0
100	1,275	150	329	125
200	1,275	150	636	150
300	1,275	150	1,016	175
400	1,275	150	1,497	200
500	1,275	150	2,093	225
600	1,275	150	2,815	250
700	1,275	150	3,670	275
800	1,275	150	4,662	300
900	1,275	150	5,796	325