Subject Microeconomics
Quantity |
AFC |
AVC |
ATC |
TC |
MC |
MR |
Profit/loss |
1 |
60 |
45 |
--- |
56 |
|||
2 |
30 |
42.5 |
|||||
3 |
20 |
40 |
|||||
4 |
37.5 |
||||||
5 |
37 |
||||||
6 |
37.5 |
||||||
7 |
38.57 |
||||||
8 |
40.63 |
||||||
9 |
43.33 |
||||||
10 |
46.5 |
Week 2: Problem: Profitability
Since no information on marginal revenue is given we will consider it to be constant.
Hence profits will be calculated as:
Profit = (Marginal revenue*Quantity) - Total Cost
Quantity | AFC | AVC | ATC | TC | MC | MR | Profit/Loss |
1 | 60 | 45 | 105 | 105 | - | 56 | -49 |
2 | 30 | 42.5 | 72.5 | 145 | 40 | 56 | -33 |
3 | 20 | 40 | 60 | 180 | 35 | 56 | -12 |
4 | 15 | 37.5 | 52.5 | 210 | 30 | 56 | 14 |
5 | 12 | 37 | 49 | 245 | 35 | 56 | 35 |
6 | 10 | 37.5 | 47.5 | 285 | 40 | 56 | 51 |
7 | 8.57 | 38.57 | 47.14 | 330 | 45 | 56 | 62 |
8 | 7.5 | 40.63 | 48.13 | 385 | 55 | 56 | 63 |
9 | 6.67 | 43.33 | 50 | 450 | 65 | 56 | 54 |
10 | 6 | 46.5 | 52.5 | 525 | 75 | 56 | 35 |
Hence we can see that Profits are maximised at q = 8 where profits = 63.
Subject Microeconomics Quantity AFC AVC ATC TC MC MR Profit/loss 1 60 45 --- 56 2...
Economics Question 1: Question 2: FC VC TC AFC AVC ATC MC 920 475 60 What is the FC equal to? [Type a whole number, no gaps.] FC VC TC AFC AVC ATC MC 920 475 60 10 What is the MC at Q=2 equal to? [Type a whole number, no gaps.]
Economics Question 1: Question 2: Q FC | VC TC AFC AVC ATC MC 920 475 60 10 What is the AVC at Q=2 equal to? [Type a whole number, no gaps.] FC VC TC AFC AVC ATC MC 920 475 60 What is the ATC at Q=3 equal to? [Type a whole number, no gaps.]
e. If Total Variable Costs were $20 greater at each level of output, what would happen to the location of the: (1) AFC curve? (2) AVC curve? (3) ATC curve? Normal textTimes New. 12 BTUA 0 - 1 E E EE 4 230 3. A firm has Short-Run Costs as indicated in the table below. Total TC TFC TVC ATC AFC AVC МС Product 0 $ 80 $ 80 $0 125 80 45 $125 $80 $45 45 $45 2 165...
Labor TVC TC MC AFC AVC ATC 25 50 75 100 25 125 (a) Complete the blank columns (5 points). Please create a table like mine and fill it. (b) Assume the price of this product equals $10. What's the profit-maximizing output (q)? (3 points). Note: managers maximize profits by setting MR=MC and under perfectly competitive markets, MR=Price. Thus, maximize profit by producing a where P=MC.(2 points) (c) What is the profit? (3 points) TOTAL COST (TC) - the...
Find TC, MC, AFC, AVC, and ATC from the following table. Instructions: Enter your responses rounded to two decimal places. Units (Q) VC($) TC($) MC($) | AFC($) AVC($) ATC($) FC($) 100 100 100 100 100 100 40 60 TDTT 70 85 130 (Note: Marginal costs should be interpreted as between levels of output.)
nk spaces of this table. Note that Q, VC. TC, AFC. AVC. ATC. an o output, variable cost, total cost, average fixed cost, average the blank of total cost, and marginal cost, respectively. (10 Points) AFC TAVG 50 n/a n/a n/a n/a 10 10 10 60 30 80 30 6.67 20 36.67 100 150 12.5 37.5 150 30 8.3535 43.33 60 b Please graph the ATC, FC, MC curve respectively (5 Points) c What is shape of ATC and can...
3. Given the data below, compute TR, TC, TFC, TVC, ATC, AVC, AFC, MR, MC, AR, and Profit 1 2 3 6 7 8 9 10 11 0 TC = 10 +570 - 80+ TR = 452 - 0 50. Find the profit maximizing level of output and graph all the curves. Note: for both problems. Graph all the total curves together on one graph Graph all the average and marginal curves together on one graph Graph the profit curve...
Complete the following table Q TFC TVC TC AFC AVC ATC MC 0 800 ------ ----- ----- ----- 1 40 2 35 3 296 4 14 5 918
Given the below table: Q FC VC TC AFC AVC ATC MC 0 120 1 180 2 220 3 270 4 360 5 470 6 600 Complete the table. Draw the diagram with the curves of TC, VC and FC. Draw the diagram of the curves of ATC, AVC and AFC.
Price MC ATC AVC - MR 40 45 47 Quantity a. (1 points) Using the graph above, what is the profit maximizing or loss minimizing output and price? b. (1 point)Using the graph above, what is the profit or loss for the profit maximizing firm? c. (2 points) What would happen in this market in the long run. Be sure to explain in detail what happens in the market and the firm. What would be the long run price, and...