Chapter 14 1. Chart. Market for portable, flat-sc reen TVs. Quantity Total Cost Marginal Cost Price...
Chapter 14
1. Chart. Market for portable, flat-sc
reen TVs.
| Quantity | Total Cost | Marginal Cost | Price | Total Revenue | Marginal Revenue |
| 0 | $500 | ---- | $350 | ---- | |
| 1 | $550 | $350 | |||
| 2 | $600 | $350 | |||
| 3 | $800 | $350 | |||
| 4 | $1000 | $350 | |||
| 5 | $1250 | $350 |
- Give the total fixed cost? Fill in the Marginal Cost for the entire chart.
- How can you determine total revenue? Fill in TR for the chart.
- Fill in marginal revenue for the chart. At what quantity will the manufacturer produce and maximize profit?
- What type of firm is this TV manufacturer? How can you tell?
2. Draw the MC, ATC, MR & D curve for the perfectly competitive firm. Show equilibrium such that Q=200 & P = $5.
Homework Answers
| Q | TC | MC=Change in TC | P | TR=(P)(Q) | MR=Change in TR |
| 0 | 500 | - | 350 | 0 | - |
| 1 | 550 | 50 | 350 | 350 | 350 |
| 2 | 600 | 50 | 350 | 700 | 350 |
| 3 | 800 | 200 | 350 | 1050 | 350 |
| 4 | 1000 | 200 | 350 | 1400 | 350 |
| 5 | 1250 | 250 | 350 | 1750 | 350 |
(a) Total fixed cost = $500. Marginal cost is the change in total cost.
(b) Total revenue is calculated by multiplying price by quantity.
(c) Marginal revenue is calculated by change in the total revenue. The profit maximizing condition is when P=MR=MC, so the profit maximizing output = more than 5 units of output , it is may be 6 or 7 units of output at which P=MC.
(d) TV manufacturer firm is a perfectly competitive firm because price is equal to marginal revenue at each level of output.
Add Answer to:
Chapter 14
1. Chart. Market for portable, flat-sc
reen TVs.
Quantity
Total Cost
Marginal Cost
Price...
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions:...
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions: TR = 10Q TC = 2 + 2Q + Q2 MC = 2 + 2Q At the level of output maximizing profit , the above firm's level of economic profit is A) $0 B) $4 C) $6 D) $8 *Additional information after I did the math: The price this firm charges for its product is $10, the level of output maximizing profit is 4...
17. To maximize profits, a firm must choose its quantity at the point where... a. Total...
17. To maximize profits, a firm must choose its quantity at the point where... a. Total revenue (TR) - total cost (TC). b. Marginal revenue (MR)= marginal cost (MC). c. MR-MC is maximized. d. TR is maximized. 18. For a profit maximizing monopoly that uses the same price for all its customers, which of the following is true at the monopoly's profit maximizing quantity? a. MR =P b. MC-P. c. MR>P. d. MC>P. e. MR<P
The graph below shows a monopolist's demand (D), marginal revenue (MR), marginal cost (MC), and average...
The graph below shows a monopolist's demand (D), marginal
revenue (MR), marginal cost (MC), and average total cost (ATC)
curves. Management wants to adjust the production output quantity
to maximize the firm's profits. What quantity should the firm aim
for?
Give your answer by dragging the Q line to a new position to mark
the quantity at which profit is as large as possible.
Price and cost ATC MC MR Quantity
23. A competitive firm can sell its product for a price of $3 in the market...
23. A competitive firm can sell its product for a price of $3 in the market (there is a reason the word competitive is underlined and in bold!). Total costs are given below. Fill in the following columns in the table: price, total revenue, marginal revenue, marginal costs, variable costs, fixed costs, profit, and average total cost. (Hint if you get stuck: what are variable costs at a quantity of 0? Therefore, what are fixed costs?). Quantity Price TR MR ...
Exhibit 7-17 Marginal revenue and cost per unit curves DMC ATC Price and costs per unit...
Exhibit 7-17 Marginal revenue and cost per unit curves DMC ATC Price and costs per unit (dollars) AVC 0 20 100 40 60 80 Quantity of output (units per day) 16. As shown in Exhibit 7-17, the price at which the firm earns zero economic profit in the short-runis a. $10 per unit. b. $15 per unit. c. $40 per unit. d. more than $20 per unit. e. $20 per unit. 17. In long-run equilibrium, the typical perfectly competitive firm...
The graph below shows a monopolist's demand (D), marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves. Management wants to adjust the production output quantity to maximize the firm's profits. What quantity should the firm aim fo
The graph below shows a monopolist's demand (D), marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves. Management wants to adjust the production output quantity to maximize the firm's profits. What quantity should the firm aim for?Give your answer by dragging the Q line to a new position to mark the quantity at which profit is as large as possible. To refer to the graphing tutorial for this question type, please click here.
Let P = price, MR = marginal revenue, MC = marginal cost, and ATC = average...
Let P = price, MR = marginal revenue, MC = marginal cost, and ATC = average total cost. In monopolistic competition, which of the following most accurately describes the long-run equilibrium conditions for a firm? Group of answer choices P > ATC, MR = MC, and P > MC P > ATC, MR > MC, and P = MC P = ATC, MR = MC, and P > MC P = ATC, MR = MC, and P = MC P...
The graph to the right shows the Marginal Cost (MC), Average Total Cost (ATC), and Marginal...
The graph to the right shows the Marginal Cost (MC), Average Total Cost (ATC), and Marginal Revenue (MR) curves for a perfectly (or purely) competitive firm. Note that the Demand (D) curve is the same as the MR curve for such a MR/MC ($) firm. Assume that the cost curves here are representative of other firms in the industry. Given the current price, this firm will: earn a positive profit. earn a negative profit. earn zero economic profit. In the...
1. A monopoly is facing an inverse demand curve that is p=200-5q. There is no fixed cost and the marginal cost of produc...
1. A monopoly is facing an inverse demand curve that is
p=200-5q. There is no fixed cost and the marginal cost of
production is given and it is equal to 50.
Find the total revenue function.
Find marginal revenue (MR).
Draw a graph showing inverse demand, MR, and marginal cost
(MC).
Find the quantity (q) that maximizes the profit.
Find price (p) that maximizes the profit.
Find total cost (TC), total revenue (TR), and profit made by
this firm.
Find...
The curves show the marginal revenue (MR), marginal cost (MC), and average total cost (ATC) functions...
The curves show the marginal revenue (MR), marginal cost (MC), and average total cost (ATC) functions for a firm in a competitive market. Use the area tool to draw the area representing the maximum profit the firm could earn—that is, the profit the firm would earn if it produced the optimal quantity. Your answer should be a rectangle drawn with four corners.
17. To maximize profits, a firm must choose its quantity at the point where... a. Total revenue (TR) - total cost (TC). b. Marginal revenue (MR)= marginal cost (MC). c. MR-MC is maximized. d. TR is maximized. 18. For a profit maximizing monopoly that uses the same price for all its customers, which of the following is true at the monopoly's profit maximizing quantity? a. MR =P b. MC-P. c. MR>P. d. MC>P. e. MR<P
The graph below shows a monopolist's demand (D), marginal
revenue (MR), marginal cost (MC), and average total cost (ATC)
curves. Management wants to adjust the production output quantity
to maximize the firm's profits. What quantity should the firm aim
for?
Give your answer by dragging the Q line to a new position to mark
the quantity at which profit is as large as possible.
Price and cost ATC MC MR Quantity
Exhibit 7-17 Marginal revenue and cost per unit curves DMC ATC Price and costs per unit (dollars) AVC 0 20 100 40 60 80 Quantity of output (units per day) 16. As shown in Exhibit 7-17, the price at which the firm earns zero economic profit in the short-runis a. $10 per unit. b. $15 per unit. c. $40 per unit. d. more than $20 per unit. e. $20 per unit. 17. In long-run equilibrium, the typical perfectly competitive firm...
The graph to the right shows the Marginal Cost (MC), Average Total Cost (ATC), and Marginal Revenue (MR) curves for a perfectly (or purely) competitive firm. Note that the Demand (D) curve is the same as the MR curve for such a MR/MC ($) firm. Assume that the cost curves here are representative of other firms in the industry. Given the current price, this firm will: earn a positive profit. earn a negative profit. earn zero economic profit. In the...
1. A monopoly is facing an inverse demand curve that is
p=200-5q. There is no fixed cost and the marginal cost of
production is given and it is equal to 50.
Find the total revenue function.
Find marginal revenue (MR).
Draw a graph showing inverse demand, MR, and marginal cost
(MC).
Find the quantity (q) that maximizes the profit.
Find price (p) that maximizes the profit.
Find total cost (TC), total revenue (TR), and profit made by
this firm.
Find...
The curves show the marginal revenue (MR), marginal cost (MC), and average total cost (ATC) functions for a firm in a competitive market. Use the area tool to draw the area representing the maximum profit the firm could earn—that is, the profit the firm would earn if it produced the optimal quantity. Your answer should be a rectangle drawn with four corners.
Most questions answered within 3 hours.
-
What does a 2-sided p value of 0.04 mean? (I am not asking if it
is...
asked 9 minutes ago -
A parallel-plate capacitor is made from two aluminum-foil
sheets, each 7.8 cmcm wide and 5.1 mmlong....
asked 10 minutes ago -
1. why is toluene a stronger nucleophile than benzene?
2.why is phenol a stronger nucleophile than...
asked 27 minutes ago -
4. How can you solve for the density of the liquid from the
slope? Please show...
asked 27 minutes ago -
when 2053 j of heat is added to 46.3 g of hexane C6H14 the
temperature increases...
asked 50 minutes ago -
I need new and unique answers, please. (Use your own words,
don't copy and paste), Please...
asked 53 minutes ago -
MCL 445.111 et seq. deals with Home Solicitation Sales.
MCL stands for Michigan Compiled Laws which...
asked 44 minutes ago -
Which of the following items may not create an NOL?
a.
sole proprietorship loss
b.
personal...
asked 49 minutes ago -
A hypothetical solution forms between a solid and a liquid. The
values of the thermodynamic quantities...
asked 47 minutes ago -
a)An ideal heat pump is being considered for use in heating an
environment with a temperature...
asked 50 minutes ago -
.
Convert the following pairs of voltage and current waveforms to
phasor form. Each pair of...
asked 52 minutes ago -
A 6.5 cm diameter ball has a terminal speed of 22 m/s. What is
the ball's...
asked 1 hour ago