Consider the table 7-2.
a. If the market price is $2.22 determine the profit maximizing output.
b. If the market price is $1.50 determine the profit maximizing output.
c. If the market price is $5.00 determine the profit maximizing output.
a) Setting P=MC, the firm will produce Q = 107 units
b) Setting P=MC the firm will produce Q = 0 units as P is less than the minimum AVC
c) Setting P=MC, the firm will produce Q = 117 units
Consider the table 7-2. a. If the market price is $2.22 determine the profit maximizing output....
In perfect competition the price is ALWAYS $10. In the monopoly, the price changes. Perfect Competition Price of output: $10 Fixed costs: $200 Variable Cost Fixed Cost Total Cost Avg Variable Avg Fixed | Cost Cost Avg Total Cost Total Marginal Marginal Revenue Revenue Cost Output SO $0 $14.50 $10.63 $100 $200 $300 $400 $500 $600 $700 $800 $9.92 $10.50 $50 $250 $20.00 $90 $4.50 $160 $360 $5.33 $6.67 $225 $300 $500 $6.00 $4.00 $395 $510 $710 $7.29 $2.86 80...
Fill out the table, answer questions at the end. Avg Total Cost Total Marginal Marginal Revenue Revenue Cost Perfect Competition Price of output: $10 Fixed costs: $200 Avg Variable Fixed Total Variable Avg Fixed Output Cost Cost Cost Cost Cost $0 10 $50 $250 $20.00 20 $90 $4.50 30 $160 $360 $5.33 $6.67 $225 $300 $500 $6.00 $4.00 $395 70 $510 $710 $7.29 $2.86 80 $640 $8.00 1. What is the profit-maximizing level of output? 2. What are profits at...
(43) Assume a single firm in a purely competitive industry has short-run production costs as indicated in the following table. Answer questions a through c using the data from this table. TVC-Total variable Costs. TC=Total Costs: AFC=Average Fixed Costs; AVC=Average Variable Costs; ATC-Average Total Costs; MC-Marginal Costs Total Output Total Variable Cost $ TVC TC 0 $5.00 $8.00 $10.00 $11.00 $13.00 $16.00 $20.00 Total Cost $ Average Average Average Total Cost Cost $ MC Marginal Fixed CosVariable $ AFC Cost...
A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue so $10, average total cost of $8 and fixed cost of $200. a. what is the profit?b. what is the marginal cost?c. what is its average variable cost?d. is the efficent scale of the firm more than, less than, or equal to 100 units?
please fill in the empty spot on the table! also can you show me the equation on how to find them? THANKS Perfect Competition Price of output Fixed costs: $10 $200 Avg Avg Variable Avg Fixed Total Cost Variable Total Total Fixed Marginal Marginal Cost Cost Revenue Revenue Output Cost Cost Cost Cost $0 $0 X $50 $250 $20.00 $100 10 $90 $4.50 $5 33 $14.50 $200 20 $160 $360 $6.67 $300 30 $225 $10.63 $400 40 $300 $500 $6.00...
a) How does a firm operating under monopoly market structure determine profit maximizing output and price? b) Explain why an increase in price above the profit maximising price implies that a reduction in profits for the monopolist.
a) How does a firm operating under monopoly market structure determine profit maximizing output and price? (5 marks)b) Explain why an increase in price above the profit maximising price implies that a reduction in profits for the monopolist.
Figure: The Profit-Maximizing Output and Price Price, cost, marginal revenue of diamond $1,000 800 600 400 200 C MC -200 -400 8 10 16 20 Quantity of diamonds Reference: Ref 13-17 (Figure: The Profit-Maximizing Output and Price) Look at the figure The Proht-Maximizing Output and Price. Assume that there are no fixed costs and AC MC-$200. At the profit-maximizing output and price for competitor perfectly competitive industry, consumer surplus is: $6,400 O $1.600. o$0. С $3,200.
draw graphs of each market structure using the following information: profit maximizing level of output 400 price at $100 I U U P S Rena + Shek. 3. Draw graphs of each market structure using the following information: Profit-maximizing level of output of 400 Price of $100 ATC of $70 when output = 400 a. Perfect competition MC MR ATC 400 b. Monopoly C. Monopolistic competition d. Oligopoly
The price elasticity of demand for the output of a profit-maximizing firm is E = −2. This firm will mark up the price of its product above marginal cost by __________ percent. 100 150 None of the options. 50 25