Quantity | Marginal cost | Total Cost | Marginal revenue | Total revenue (P (=$60) xQ) | Total Profit (TR-TC) |
0 | 30 | 0 | -30 | ||
1 | 30 | 60 | 60 | 60 | 0 |
2 | 30 | 90 | 60 | 120 | 30 |
3 | 40 | 130 | 60 | 180 | 50 |
4 | 60 | 190 | 60 | 240 | 50 |
5 | 90 | 280 | 60 | 300 | 20 |
Profit will be maximum at the production of 4 units as MR=MC at this level
In Graph 2 at this level, MC crosses MR from below
Production Decisions Worksheet (Considering Both Costs and Revenues, What Level of Production will Maximize Profits?) Tubby's...
Part III. Graphing the perfectly competitive model (20 points). Use one graphing paper only for the graph. Attach the graphing paper with this completed questionnaire upon submission. All answers should be handwritten. Given: Selling price P=60 Total cost TC = 128 +69 Q-14 Q2 +Q? 1. Average cost equation AC= 2. Marginal cost equation MC = 3. Fill in the blanks in the table. You should be able to show that at the optimum rate of output, Q*, the profit...
The graph below represents the costs of production for a monopolistically competitive firm. Assuming the firm is producing at the profit-maximizing level of output, (Q*,P*) , where Q = 40 and P * =$16 . Assume average cost is $14.50 Question 9 The graph below represents the costs of production for a monopolisticall competitive firm. Assuming the firm is producing at the profit-maximizing level of output, (Q.,P), where Qu=40 and P =$16. Assume average cost is $14.50. profit-$__(Please only answer...
A monopolistically competitive firm that wishes to maximize profits will choose to produce that level of output where: Price of the good is equal to the marginal revenue of producing the last unit of the good Price of the good is equal to the marginal cost of producing the last unit of the good. Marginal revenue is equal to marginal cost. ATC is at the lowest point possible. An industry has eight firms with the following market shares: 5%, 20%,...
VC. ( points) 2. (5 points) At its current level of production, a profit-maximizing firm in a competitive market verage total cost of $8. At the market receives $12 for each unit it produces and faces an a price of $12 per unit, the firm's marginal cost curve crosses the marginal revenue curve at an output level of 500 units. (a) What is the firm's current profit or los? Explain. (1 point) ( Draw an bel a graph of the...
SHOW EXCEL FORMULAS Problem Instructions Description: oblem, you will calculate the costs and profits in two different situations with a specific tax and without it. Also, you will determine whe Perform: Instructions 1 Start Excel 2 In cell D16, by using relative and absolute cell references, calculate the price for the output in cell C16. Copy the formula from cell D 3 In cell E16, by using cell references, calculate the price elasticity of demand for the output in cell...
At its current level of production, a profit-maximizing firm in a competitive market receives $15 for each unit it produces and faces an average total cost of $10. At the market price of S15 per unit, the firm's marginal cost curve crosses the marginal revenue curve at an output level of 1.300 units. What is the fim's current profit? What is likely to occur in this market and why?
At its current level of production a profit-maximizing firm in a competitive market receives $10 for each unit it produces and faces an average total cost of $12.5. At the market price of $10 per unit, the firm's marginal cost curve crosses the marginal revenue curve at an output level of 1,000 units. What is the firm's current profit? What is likely to occur in this market and why?
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.
A perfectly competitive fim has to incur the following costs in production: $30 as the cost associated with the fixed factors and S10 as the cost of each variable input. ) Complete the table below Units of variable Total product Total variableTota al costMarginal cost Average variable Average total factor 0 cost 0 10 20 30 40 cost cost 0 30 40 50 60 70 20 10 8.57 8.75 5 3.33 4 4.29 4 10 b) (0 Graph the marginal...
The table below shows the marginal revenue and costs for a monopolist. Demand, Costs, and Revenues Price Quantity Marginal Revenue (dollars) Demanded (dollars) $130 200 $130 120 300 100 110 400 80 100 500 60 90 600 40 80 700 20 Marginal Cost (dollars) $25 32 40 Average Total Cost (dollars) $139.00 103.30 87.50 82.00 77.00 77.00 60 52 77 Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a...