Question

Exhibit I: Price Charged by MSL for Personnel Provided and Cost to MSL
Quantity (Number of Personnel per Facility/House/Building/Apartment)	Price Charged per Person (AR/Demand) (in `)	Average Cost per Person (AC) (in `)
1	25,000	18,000
2	23,000	16,000
3	21,000	14,000
4	19,000	12,750
5	18,000	12,600
6	17,000	13,000
7	16,000	14,143
8	15,000	15,438
9	14,000	16,778
10	13,000	18,100
Prepared by the authors

1. Sketch TR, MR, ATC, TC, and MC on a graph, and highlight the firm’s profit or loss under the condition of imperfect competition.

Answer 1

Hence profit maximiing unit is when MR = MC in imperfect competition