1. Table I below shows the short-run output, cost and revenue situation of Platinum Manufacturing Company Study it and answer the questions that follow:
TOTAL PROFIT
OUTPUT
(KG)
TOTAL
REVENUE (S)
TOTAL
VARIABLE COST
(S)
TOTAL COST
(S)
70
0
1
2
3
4
5
100
120
140
20
120
S
160
180
200
-50
T
50
P
210
280
Q
150
180
a) Calculate the values of P, Q, R, S, T, and U
b) i) What is the price per unit of output?
ii) What is the firm's fixed cost of production?
c) In what market structure is the firm operating? Explain your answer.
d) At what output level does the firm break-even?
e) State any TWO output levels at which the firm earned abnormal profit.
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