Figure 4: A Firm P Marginal Cost 21 18 Average Total Cost 15 14 12 Marginal...

Question

Question

Figure 4: A Firm P Marginal Cost 21 18 Average Total Cost 15 14 12 Marginal Revanue Demand 0 30 40 50 60 b) (3 points) Assuming that this firm can not price discriminate, what is the profit maximizing quantity for the firm? c) (3

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Ans. b) When the firm cannot price discriminate, the profit maximization occurs when MR=MC.

Here, it occurs at an output level of 40 units.

Thus, profit maximizing quantity for the firm is 40 units.

c) Similarly, profit maximizing price level when firms cannot price discriminate is 18.

Add a comment

Answer 2

Similar Homework Help Questions

Figure 4: A Firm P Marginal Cost 21 18 Average Total Cost 15 14 12 1...

Figure 4: A Firm P Marginal Cost 21 18 Average Total Cost 15 14 12 1 Marginal Revanue Demand > Q 0 30 40 50 60 d) (3 points) Assuming that this firm can not price discriminate, calculate this firm's profit (shade in and label the area on the graph representing the firms profit for partial credit if you cannot get a numerical answer.) e) (3 points) Assuming that this firm can not price discriminate, calculate the dead weight loss...
Figure 4: A Firm P Marginal Cost 21 18 Average Total Cost 15 14 12 Marginal...

Figure 4: A Firm P Marginal Cost 21 18 Average Total Cost 15 14 12 Marginal Revanue Demand 0 30 40 50 60 g) (3 points) If this firm is price discriminating, will consumer surplus be higher or lower than when the firm is not price discriminating? h) (3 points) If this firm is price discriminating, will producer surplus be higher or lower than when the firm is not price discriminating? g) (3 points) If this firm is price discriminating,...
5. (15 points) The market demand function is (P)=18-P. The marginal cost is 3. Suppose there...

5. (15 points) The market demand function is (P)=18-P. The marginal cost is 3. Suppose there is no fixed cost. Alice and Bob are two firms in the market. (a) (5 points) If Bob produces 3 units, what is Alice's profit-maximizing quantity? (b) (10 points) Find the aggregate quantity and price in the Nash equilibrium of the duopoly market.

Quantity Total Cost Marginal Cost Average Total Cost Average Variable Cost 0 1,000 - - -...

Quantity Total Cost Marginal Cost Average Total Cost Average Variable Cost 0 1,000 - - - 10 1,600 60 160 60 20 2,100 50 105 55 30 2,500 40 83.33 50 40 2,800 30 70 45 50 3,200 40 64 44 60 3,700 50 61.67 45 70 4,300 60 61.43 47.14 80 5,000 70 62.50 50 90 5,800 80 62.44 53.33 Consider the above costs of a purely competitive firm. Calculate this firm's profit maximizing quantity and profit (or loss)...
The figure shows the marginal cost (circles) and the average variable cost (crosses) of a firm...

The figure shows the marginal cost (circles) and the average variable cost (crosses) of a firm in a competitive market. The firm always makes the choice to maximize its profit. Price, Cost ($) 5,000 ------ --O If the market price of the product is $3,400, what is the firm's producer surplus? 3,400 3,200 +----- --- ------------ O A. $880 O B. $5,700 OC. $1,700 OD. $3,250 2,000 1.700 1,000 -------- ====== ---------- ==== 1 2 6 7 Quantity 3 4...
The average total cost curve for a perfectly competitive firm. Suppose the marginal cost curve is upward sloping an...

The average total cost curve for a perfectly competitive firm. Suppose the marginal cost curve is upward sloping and this firm is maximizing its total profit at a market price of $15. The firm's per unit profit is: $20 ATC 0 10 20 30 40 50 60 70 80

b) (4 points) Graph demand, marginal revenue, marginal cost and average total cost (ATC) below. Mark...

b) (4 points) Graph demand, marginal revenue, marginal cost and average total cost (ATC) below. Mark Q*, P*, ATC* (you’ll have to calculate it) and the endpoints to all of the curves. c) (2 points) Given your answers above, explain which curve(s) will shift in the long run and why. d) (4 points) Draw the graph that represents this firm in the long-run. Label the profit-maximizing price and quantity as P* and Q*, respectively. No numbers are necessary, but be...
3. (Figure 9.4) Which of the following statements is (are) TRUE? Price (S) 20 18 14...

3. (Figure 9.4) Which of the following statements is (are) TRUE? Price (S) 20 18 14 MC 10 MR 24 56 8 0 Quantity (160s) 3.54 I. If the firm is producing 5 units of output, it should expand output to increase profits because P II. At a price of $16, the firm's profits would rise if it raised its price III. The profit-maximizing quantity is 600 units. IV. The profit-maximizing price is $13. MC O II O I and...
U Question 7 1 pts The figure below depicts the demand, marginal revenue, and marginal cost...

U Question 7 1 pts The figure below depicts the demand, marginal revenue, and marginal cost curves of a profit-maximizing monopolist. Price $40 30 20 Marginal Cost Demand 10 Marginal Revenue O 100 200 300 400 Quantity Refer to the figure above. If there are no fixed costs of production, maximized monopoly profit for a single-price monopolist that can not price discriminate equals O $500. $1,000. O $2,000. $4,000.

Microeconomic question perfectly competitive firm is The following figure shows the marginal cost, average total cost,...

Microeconomic question perfectly competitive firm is The following figure shows the marginal cost, average total cost, demand, marginal revenue curves for a firm in monopolistic competition. Assume that the cost curves of a perfectly competitive firm are identical to the cost curves of this monopolistically competitive firm shown here. The average revenue for the perfectly competitive firm is $6. of AA л Figure 10.1 Marginal Cost Average Total Cost Dollars per unit mm Demand 10 Marginal Revenue 20 30 40...

Figure 4: A Firm P Marginal Cost 21 18 Average Total Cost 15 14 12 Marginal...

Homework Answers

Add Answer to:
Figure 4: A Firm P Marginal Cost 21 18 Average Total Cost 15 14 12 Marginal...

Post as a guest

Earn Coins

Figure 4: A Firm P Marginal Cost 21 18 Average Total Cost 15 14 12 1...