Homework Answers
1.
a) the profit maximizing quantity is where MR = MC, but according to the table there is no quantity where MR = MC, so we will choose where MR > Mc and the difference between them is minimum.
Which is according to the table is Q = 6.
So the profit maximizing level of output = 6 units.
b) Profit = $4 from the table
**First question is completely answered, as HOMEWORKLIB RULES policy**
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The following table presents cost and revenue information for a firm operating in a competitive industry...
k. The following table shows the revenue and cost information for a firm in a competitive...
k. The following table shows the revenue and cost information for a firm in a competitive market. a) Fill in the missing information. $Price $Total Revenue Marginal Revenue SMC 80 Quantity 0 5 10 15 20 25 30 $Total Cost 100 600 1,075 1,525 1,925 2,525 3,525 b) Based on this information, what are the firm's fixed costs? How do you know? c) What quantity is the firm's profit maximizing quantity? Explain. d) Graph the total revenue and the total...
The following graph shows the daily cost curves of a firm operating in a perfectly competitive...
The following graph shows the daily cost curves of a firm operating in a perfectly competitive market. Suppose the market price for the good is $80 per unit Use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss at the market price of $80 per unit if the firm chooses to produce the profit-maximizing quantity of output Profit or Loss PRICE AND COST (Dollars) QUANTITY (Thousands of units) At the market price of $80...
CHAPTER 11 (Competitive market) Figure 2 illustrates the cost and revenue functions for a firm operating...
CHAPTER 11 (Competitive market) Figure 2 illustrates the cost and revenue functions for a firm operating in a competitive industry. Use it to answer Questions #4 through #8. Figure 2 / AVC Price and Cost AVC MC 130 180 240 Quantity 4. Ceteris paribus, if the market price is $22 per unit, then it follows that the firm's profit-maximizing (or loss-minimizing) level of output: A. is zero B. cannot be determined C. is 180 D. is less than 180
(43) Assume a single firm in a purely competitive industry has short-run production costs as indi...
(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...
Assume that the cost data in the following table are for a purely competitive producer:
Assume that the cost data in the following table are for a purely competitive producer: TotalProductAverageFixed CostAverageVariable CostAverageTotal CostMarginal Cost01$60.00$45.00$105.00$45.00230.00 42.50 72.5040.00320.00 40.00 60.0035.00415.00 37.50 52.5030.00512.00 37.00 49.0035.00610.00 37.50 47.5040.0078.57 38.57 47.1445.008 7.50 40.63 48.1355.009 6.67 43.33 50.0065.0010 6.00 46.50 52.5075.00 Instructions: If you are entering any negative numbers be sure to include a negative sign (−) in front of those numbers. Select "Not applicable" and enter a value of "0" for output if the firm does not produce. a. At a product price of $66.00 (i) Will this firm produce in the short run? (Click to select) No Yes (ii) If it is preferable to produce, what...
A business is operating in a perfectly competitive market. Carefully and CLEARLY complete the table below....
A business is operating in a perfectly competitive market. Carefully and CLEARLY complete the table below. Quantity Price Total Revenue Total Fixed Cost Total Variable Cost Total Cost Marginal Revenue Marginal Cost 0 $21 35 0 ----- ----- 1 6 2 11 3 15 4 20 5 26 6 34 7 45 8 60 9 80 10 106 In this situation: what is the business's profit-maximizing price? __________________________________ what is the profit maximizing quantity? ______________________________ what is the profit or...
2. The following table shows the revenue and cost information for a firm in a competitive...
2. The following table shows the revenue and cost information for a firm in a competitive market. $Price $Total Revenue $Marginal Revenue SMC Quantity 0 5 400 80 80 80 10 15 800 80 80 80 $Total Cost 100 600 1,075 1,525 1,925 2,525 3,525 1200 1600 100 95 90 80 120 200 80 80 20 25 30 80 80 2000 2400 80 80 a) Graph the total revenue and the total cost curves on a graph. Show that profit...
Total Revenue Marginal Revenue 1) For the following firm in a competitive market, COSTS REVENUES Quantity...
Total Revenue Marginal Revenue 1) For the following firm in a competitive market, COSTS REVENUES Quantity Total Marginal Quantity Produced Cost Cost Demanded Price SO $80 $50 $80 $102 $80 $157 $80 $217 SSO $285 $80 $365 $80 $462 $80 8 $582 IS $80 a) Fill the column for marginal cost, total revenue and marginal revenue. b) What is interesting about the numbers you find for marginal revenue. c) Based on profit maximization rule that you learned in Chapter 14...
15. Use the following figure for a firm in a perfectly competitive market. a What is the output that maximizes...
15. Use the following figure for a firm in a perfectly competitive market. a What is the output that maximizes the firm's profit? b. At the profit-maximizing output, calculate total revenue and total cost. C. If the firm maximizes profit, how much profit does it earn? d. What will likely happen to market demand or market supply in the long run? e. What will likely happen to the market price in the long run? Price (s) d = P =...
Assume the following cost data are for a purely competitive producer: Average Product Fixed Cost Variable...
Assume the following cost data are for a purely competitive producer: Average Product Fixed Cost Variable Cost Total Cost Average Average Marginal Total Cost $60.00 $45.00 $105,00 $45.00 1 72.50 2 30.00 42.50 40.00 3 20.00 40.00 60.00 35.00 30.00 15.00 37.50 52.50 5 12.00 37.00 49.00 35.00 6 10.00 37.50 47.50 40.00 8.57 7 38.57 47.14 45.00 7.50 40.63 48.13 50.00 55.00 9 6.67 43.33 65.00 10 6.00 46.50 52.50 75.00 Answer the following questions (a - c) using...
k. The following table shows the revenue and cost information for a firm in a competitive market. a) Fill in the missing information. $Price $Total Revenue Marginal Revenue SMC 80 Quantity 0 5 10 15 20 25 30 $Total Cost 100 600 1,075 1,525 1,925 2,525 3,525 b) Based on this information, what are the firm's fixed costs? How do you know? c) What quantity is the firm's profit maximizing quantity? Explain. d) Graph the total revenue and the total...
The following graph shows the daily cost curves of a firm operating in a perfectly competitive market. Suppose the market price for the good is $80 per unit Use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss at the market price of $80 per unit if the firm chooses to produce the profit-maximizing quantity of output Profit or Loss PRICE AND COST (Dollars) QUANTITY (Thousands of units) At the market price of $80...
CHAPTER 11 (Competitive market) Figure 2 illustrates the cost and revenue functions for a firm operating in a competitive industry. Use it to answer Questions #4 through #8. Figure 2 / AVC Price and Cost AVC MC 130 180 240 Quantity 4. Ceteris paribus, if the market price is $22 per unit, then it follows that the firm's profit-maximizing (or loss-minimizing) level of output: A. is zero B. cannot be determined C. is 180 D. is less than 180
(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...
2. The following table shows the revenue and cost information for a firm in a competitive market. $Price $Total Revenue $Marginal Revenue SMC Quantity 0 5 400 80 80 80 10 15 800 80 80 80 $Total Cost 100 600 1,075 1,525 1,925 2,525 3,525 1200 1600 100 95 90 80 120 200 80 80 20 25 30 80 80 2000 2400 80 80 a) Graph the total revenue and the total cost curves on a graph. Show that profit...
Total Revenue Marginal Revenue 1) For the following firm in a competitive market, COSTS REVENUES Quantity Total Marginal Quantity Produced Cost Cost Demanded Price SO $80 $50 $80 $102 $80 $157 $80 $217 SSO $285 $80 $365 $80 $462 $80 8 $582 IS $80 a) Fill the column for marginal cost, total revenue and marginal revenue. b) What is interesting about the numbers you find for marginal revenue. c) Based on profit maximization rule that you learned in Chapter 14...
15. Use the following figure for a firm in a perfectly competitive market. a What is the output that maximizes the firm's profit? b. At the profit-maximizing output, calculate total revenue and total cost. C. If the firm maximizes profit, how much profit does it earn? d. What will likely happen to market demand or market supply in the long run? e. What will likely happen to the market price in the long run? Price (s) d = P =...
Assume the following cost data are for a purely competitive producer: Average Product Fixed Cost Variable Cost Total Cost Average Average Marginal Total Cost $60.00 $45.00 $105,00 $45.00 1 72.50 2 30.00 42.50 40.00 3 20.00 40.00 60.00 35.00 30.00 15.00 37.50 52.50 5 12.00 37.00 49.00 35.00 6 10.00 37.50 47.50 40.00 8.57 7 38.57 47.14 45.00 7.50 40.63 48.13 50.00 55.00 9 6.67 43.33 65.00 10 6.00 46.50 52.50 75.00 Answer the following questions (a - c) using...
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