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1. Given the following information: Total Product (TP) 0 1 2 3 4 5 6 Price Fixed Cost (TFC) $6000 $4000 6000 4000 6000 4000 4000 4000 4000 4000 6000 6000 6000 6000 Variable Cost (TVC) $ 0 7000 10000 12000 16000 22000 33000 a. Based upon the numbers from the table above, is this firm is operating in the short-run or the long-run? How do you know which time period it is operating in? (4 points) b. Based upon the numbers from the table above, how do you know that this firm exemplifies a purely competitive firm? (3 points) c. Solve for total cost (TC), average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), marginal cost (MC), total revenue (TR), and marginal revenue (MR) at every total product quantity. (36 points) d. What is the profit maximizing level of total product (TP) in this example? (3 points) e. At a quantity of 1, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? (9 points) f. At a quantity of 2, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? (9 points) g. At a quantity of 3, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? (9 points) h. At a quantity of 4, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? (9 points) i. At a quantity of 5, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? (9 points) j. At a quantity of 6, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or

1. Given the following information: Total Product (TP) 0 1 2 3 4 5 6 Price Fixed Cost (TFC) $6000 $4000 6000 4000 6000 4000 4000 4000 4000 4000 6000 6000 6000 6000 Variable Cost (TVC) $ 0 7000 10000 12000 16000 22000 33000 a. Based upon the numbers from the table above, is this firm is operating in the short-run or the long-run? How do you know which time period it is operating in? (4 points) b. Based upon the numbers from the table above, how do you know that this firm exemplifies a purely competitive firm? (3 points) c. Solve for total cost (TC), average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), marginal cost (MC), total revenue (TR), and marginal revenue (MR) at every total product quantity. (36 points) d. What is the profit maximizing level of total product (TP) in this example? (3 points) e. At a quantity of 1, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? (9 points) f. At a quantity of 2, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? (9 points) g. At a quantity of 3, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? (9 points) h. At a quantity of 4, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? (9 points) i. At a quantity of 5, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? (9 points) j. At a quantity of 6, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or

Micro Economics For Today
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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Please answer G , H, & I parts

1. Given the following information: Total Product (TP) 0 1 2 3 4 5 Price Fixed Cost (TFC) $6000 $4000 6000 4000 6000 4000 6000 4000 6000 4000 4000 4000 6000 6000 Variable Cost (TVC) $ 0 7000 10000 12000 16000 22000 33000 a. Based upon the numbers from the table above, is this firm is operating in the short-run or the long-run? How do you know which time period it is operating in? (4 points) b. Based upon the numbers from the table above, how do you know that this firm exemplifies a purely competitive firm? (3 points) c. Solve for total cost (TC), average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), marginal cost (MC), total revenue (TR), and marginal revenue (MR) at every total product quantity. (36 points) d. What is the profit maximizing level of total product (TP) in this example? (3 points) e. At a quantity of 1, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? (9 points) f. At a quantity of 2, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? (9 points) g. At a quantity of 3, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? (9 points) h. At a quantity of 4, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? (9 points) i. At a quantity of 5, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? (9 points) j. At a quantity of 6, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or
Transcribed Image Text:1. Given the following information: Total Product (TP) 0 1 2 3 4 5 Price Fixed Cost (TFC) $6000 $4000 6000 4000 6000 4000 6000 4000 6000 4000 4000 4000 6000 6000 Variable Cost (TVC) $ 0 7000 10000 12000 16000 22000 33000 a. Based upon the numbers from the table above, is this firm is operating in the short-run or the long-run? How do you know which time period it is operating in? (4 points) b. Based upon the numbers from the table above, how do you know that this firm exemplifies a purely competitive firm? (3 points) c. Solve for total cost (TC), average fixed cost (AFC), average variable cost (AVC), average total cost (ATC), marginal cost (MC), total revenue (TR), and marginal revenue (MR) at every total product quantity. (36 points) d. What is the profit maximizing level of total product (TP) in this example? (3 points) e. At a quantity of 1, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? (9 points) f. At a quantity of 2, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? (9 points) g. At a quantity of 3, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? (9 points) h. At a quantity of 4, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? (9 points) i. At a quantity of 5, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or shutdown? (9 points) j. At a quantity of 6, will this firm produce or shutdown? Explain. How much of a profit or loss does the firm incur based upon their decision to produce or
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