Question

TR       P          Q         TC       MC      ATC     profit               

120      120      1          130      /           130      -10                   satisfies

180      90        2          150      20        75        30                   fair

180      60        3          180      30        60        0                      profit max

160      40        4          220      40        55        -60                   prod eff

150      30        5          270      50        54        -120                 alloc eff

120      20        6          330      60        55        -210                 nothing satisfied

Under discrimination Q = 4, so TC = 220 while TR equals 120 + 90 + 40+ 60 = 310 and profit 30

alloc eff, fair, prod eff, profit max -210 -120 -60 0 4 4 6 9 16 18 20 30 30 30 34 36 36 40 40 44 45 48 50 54 55 55 60 60 60 75 90 90 100 110 120 120 120 130 150 160 180 180 220 310 360 660 990 1920

are my answers right? especialy on the maximization side.

Answer 1

Solution:

The answers are correct:

TR P Q TC MC ATC Profit 120 120 1 130 130 -10 180 90 2 150 20 75 30 Profit efficiency 180 60 3 180 30 60 0 160 40 4 220 40 55 -60 Allocation efficiency 150 30 5 270 50 54 -120 Production effciency 120 20 6 330 60 55 -210 　 Allocative efficiency occurs at a point when price equals the marginal cost Productive efficiency occurs at a point when price is equal to minimum average total cost