Question

Proft Price Number of writes gvenpien Total Total Warpiel Total Fued toduction Revenue Avenue Cost l P 1Q T Coast Coast Cast Coast Coast TCTC+TIC TOO TGIR 0 $80 180 0 2 0 1 2 3 4 5 120 9 12 0 $ 0 160 $80 400 120 720 ERO $960 O 1.1 20 0 31200 0 0 $300 3300 3200 200 $300 $300 5300 $150 $300 $450 $600 $750 300 3 00 M $ $75 $600 +750 150 $900 $50 $1050 $257 $1 200 $60 $225 $75 $290 .1.20...50...200 933 555.30 $75 450 - $60 375 $75 - $70 580 150 $0 206 15 To Do: 1. Complete the table of data for a single firm in a competitive market above. You will need formulas found in the chapter/online along with the following information: Two buildings (capital) rent for $300 for both (not each!). Employment of workers varies with production. Regardless of how many workers are employed, each worker is paid $150. Finally, the market sets the price of the widgets, which is currently at $80. 2. When you have finished, you should know the following: Demand (D), Price (P), Quantity (Q), Total Cost (TC), Marginal Cost (MC), Total Revenue (TR), Marginal Revenue (MR), Total Profit (TP) and Average Cost (AC), Average Variable Cost (AVC) for this firm. no 3. Required: Using your completed table, fill in the blanks in the following paragraph: (note: some values may be used more than once) a. Assume that the perfectly competitive widget maker above wishes to maximize profit. Based on the table above, to reach maximum profit you advise him to produce 15 quantity and charge $80_price? b. The owner of the firm asks you what rule(s) you followed to get profit maximizing quantity named above. You tell the owner you learned in econ class that profit is maximized when the quantity meets either of the following rules P - MC or MR - MC_(use letters; NOT numbers) c. She then asks you what the REVENUE will be at the profit maximizing quantity of_ _and how you calculated it. You tell her that the total revenue equal to dollars. And you got it by multiplying (use words; NOT numbers)

Answer 1

Price Numbu Total Total of workus Production Reveme gives CQ) ITR =PQ Marginal Reveme . Total tined Total 1 Total Avuage Ivariable cost cost Ivaniable (TVC) TFCETUC I Anuage cost Polit Marginal cost Mitch (TC) Te-TR MR: ACTRL cost dQ (TFC) LAVCE AUCIUC JAC=Te Im DMC 0 $80 _ $80 $160 80 $80 1 $ 400 80 $80 $720 80 $80 12 +960 80 $80 15 14 $1,220 80 260 Tanned this 102200 80 $300 i o $300 NA NA NA $300 $150 $450 $75 $225 $75 $290 $300 |$300 $600 160 $120 $50 $200 $300 | $450 4750 $50 $83.3 8375 & 30 $300 $600 $900 $50 $75 $50 $-60 4300 4750 1050 $53,57 475 475 | -970 $300 900 1422001$60 980 19,150 $ 0.

as, at Profit manimiso M I Hue from the above table we can see that the film is in long run equilibrium at Profit manimisation level . Film's Avurage to tal cost (Ac) puun't еча, я Sm's Moyal nuv (MR) = $80 at output and from is earning Zno economic the firm's Maginal revenue pu unit to at output lend of 15. Калча 2no economic Pro ft. d on the the do I Based on the the table ab maninen profit, you do advis. Produce 15 quantity and table above, to reach advise him to . . . you - $80 price you learned ownes that b you tell the owner that you . in econ class that profil is mani me who quantity meets either of the following rules! P = te or MR = AC e she then asks you what the Reve we will - be at the profit manimusing quantity of 15 . you tell her that the total reveme qual to $1200 dollars, and you got it csbg им. Ер нія Р я в CamScanner