Order the answer to: Sparkle is one firm of many in the market for

Custom Essays business-economics Order the answer to: Sparkle is one firm of many in the market for

business-economics

Order the answer to: Sparkle is one firm of many in the market for

Question Sparkle is one firm of many in the market for toothpaste, which is in long-run equilibrium. a. Draw a diagram showing Sparkle’s demand curve, marginal-revenue curve, average total- cost curve, and marginal-cost curve. Label Sparkle’s profit-maximizing output and price. b. What is Sparkle’s profit? Explain. c. On your diagram, show the consumer surplus derived from the purchase of Sparkle toothpaste. Also show the deadweight loss relative to the efficient level of output. d. If the government forced Sparkle to produce the efficient level of output, what would happen to the firm? What would happen to Sparkle’s customers?
Subject business-economics
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