1. Abby's Apples Abby's Apples is a perfectly competitive firm. Its total cost is: TC = 20 + 4Q? The market price of apples is: P = 5 Calculate Abby's profit-maximizing quantity, total revenue, total cost, and total profit (n). T== 20+%4Q2 P= MC dTC TR= P.Q mc= %3D Q* TR TC da ら10=SO 50 4S 5. 10 mC='/2Q P=MC tC=20+ Yulio)2=45 TT=TR-Tし 80-us-5 5=/2Q Q= 10
1. Abby's Apples Abby's Apples is a perfectly competitive firm. Its total cost is: TC = 20 + 4Q? The market price of apples is: P = 5 Calculate Abby's profit-maximizing quantity, total revenue, total cost, and total profit (n). T== 20+%4Q2 P= MC dTC TR= P.Q mc= %3D Q* TR TC da ら10=SO 50 4S 5. 10 mC='/2Q P=MC tC=20+ Yulio)2=45 TT=TR-Tし 80-us-5 5=/2Q Q= 10
Chapter23: Profit Maximization
Section: Chapter Questions
Problem 11E
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![1. Abby's Apples
Abby's Apples is a perfectly competitive firm. Its total cost is:
TC = 20 + 4Q²
The market price of apples is:
P = 5
Calculate Abby's profit-maximizing quantity, total revenue, total cost, and total profit (1).
P= MC
TC=20+Y4Q2
dTC
%3D
TR= P.Q
mC=
da
Q*
TR
TC
5.10=S0
mc=/2Q
TC=20+ Yulio)a=45
10
50 4S
P=MC
5= /aQ
TT =TR-T
Q=10
80-4s-5
2. Banana Market
The equilibrium market price in the perfectly competitive banana market is:
P* = 10
The average cost equation of one banana firm, Benny's Bananas, is:
AC = 4 + 1/2Q,
Find Benny's profit-maximizing output and profit in the short run.
te= 4Q+%½Q²→ mc=
drc
4+Q
Q* = _b
dq
p *-10
n* = _ 30
Pz MC
10=41Q
- 4
tC= 90
TR=P.Q= 6 10 = 60
60-90 = - 30](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1f061069-91e6-48ee-985f-f8d5b158cf5c%2Fa8278ccc-68ce-4066-af4d-b912d4a2e577%2Fobpxd88_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. Abby's Apples
Abby's Apples is a perfectly competitive firm. Its total cost is:
TC = 20 + 4Q²
The market price of apples is:
P = 5
Calculate Abby's profit-maximizing quantity, total revenue, total cost, and total profit (1).
P= MC
TC=20+Y4Q2
dTC
%3D
TR= P.Q
mC=
da
Q*
TR
TC
5.10=S0
mc=/2Q
TC=20+ Yulio)a=45
10
50 4S
P=MC
5= /aQ
TT =TR-T
Q=10
80-4s-5
2. Banana Market
The equilibrium market price in the perfectly competitive banana market is:
P* = 10
The average cost equation of one banana firm, Benny's Bananas, is:
AC = 4 + 1/2Q,
Find Benny's profit-maximizing output and profit in the short run.
te= 4Q+%½Q²→ mc=
drc
4+Q
Q* = _b
dq
p *-10
n* = _ 30
Pz MC
10=41Q
- 4
tC= 90
TR=P.Q= 6 10 = 60
60-90 = - 30
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