Question

plz all the question and how and why was it solve this way thanks a lot

5. The following table represents the costs of a price-taking firm that manufactures air conditioners. If the market price of one of its new air conditioners (P) is $105, how many air conditioners must the firm produce per day to maximize profits? (Hint: Use the condition for profit maximization for a perfectly competitive firm). Air conditioners per day Total cost ($ per day) Marginal cost ($ per day) 100 150 21 220 70 310 90 5 405 95 6 510105 7 650 140 8 800 150 A. 5 B.6 C.7 D. 8 6. If the number of sellers in a market decrease, A. supply will increase, shifting the supply curve to the left B. supply will decrease, shifting the supply curve to the right C. supply will increase, shifting the supply curve to the right D. supply will decrease, shifting the supply curve to the left 7. Refer to the accompanying table. The marginal utility of consuming the second dinner out in a week is No. of Dinners Out per Week NY Total Utility 100 | 175 235 250 A. 75 B. 235 C. 60 D. 250

Answer 1

5) The price taking firm sets P=MC for profit maximization

so, it will produce 6 units

option(B)

6) when sellers increase, the supply increases which increases equilibrium quantity and decreases price

option (C)

7) MU = change in total utility from additional consumption

= 175-100

= 75

option(A)

8) AT equilibrium QD=QS

equilibrium price = 6

equilibrium quantity = 8

option(C)

9) CS = 0.5*8*(10-6) = 16

Option(B)

10) PS = 0.5*8*(6-2) = 16

Option(B)

11) TS = CS+PS = 16+16 = 32

Option(C)