Question

Assume that the following marginal costs exist in catfish production: Instructions: Complete the table below. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Quantity produced (units per day) 10 11 12 13 14 15 16 Marginal cost (per unit) $4 6 8 10 12 14 16 Price (per unit) - $25 24 23 22 - 21 - 20 19 - 18 Quantity demanded (units per day) 10 11 12 13 14 15 16 17 Total revenue Marginal revenue

Answer 1

Quantity Produced (units/per day), Q	10	11	12	13	14	15	16	17
Marginal Cost (per unit)	4	6	8	10	12	14	16	18
Price (per unit), P	25	24	23	22	21	20	19	18
Quantity demanded (units per day)	10	11	12	13	14	15	16	17
Total Revenue=P*Q	250	264	276	286	294	300	304	306
Marginal Revenue		14	12	10	8	6	4	2

a) and b)

Price ($) MC Demand MR 8 10 12 14 Quantity 16 18 20

c)

We can that MR and MC curves intersect each other at Q=13 units

So, we can say that MR=MC at 13 units per day

d)

A monopolist would produce such that MR=MC.

Output of a monopolist=13 units

Corresponding price is $22 per unit

e)

A competitive firm increases its output level as long as P>MC or P=MC

We can see that P=MC=18 at 17 units per day

So, Price would be $18 pert unit

f)

Competitive output would be 17 units per day.