1.4) Suppose market price is RM60. How much will the firm produce in the short run? How much are total profits? Question 1A firm's costs are given in the following table.TCRM507080TFC505050TVCAVCATCMC12203020901101405050504060901513.331570403027.5201010203045182817522028020.8324.2928.7529.1731.4335635505050125170230745603604505031040034.44404045809010501.1) Complete the table. (4M)1.2) Draw a graph for each AVC, ATC and MC on one graph. (2M)1.3) Suppose market price is RM20. How much will the firm produce in the short run? Howmuch are total profits? (2M)1.4) Suppose market price is RM60. How much will the firm produce in the short run? Howmuch are total profits? (2M)到

Profit maximizing output is where marginal revenue is equal to marginal cost. Profit = Total revenue…

Answered: 1.4) Suppose market price is RM60. How…

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1.4) Suppose market price is RM60. How much will the firm produce in the short run? How much are total profits?

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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1.4) Suppose market price is RM60. How much will the firm produce in the short run? How much are total profits?

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Which time period is the firm operating? Why?
Output quantity Total variable cost Total cost 0 $0 $250 25 450 50 300 X 75 375 100 600 850 125 X 1125 150 1200 X 175 1875 200 2000 2250
5
Output (unit) Total cost (RM) Total fixed cost (RM) Total variable cost (RM) Average fixed cost (RM) Average variable cost (RM) Average total cost (RM) Marginal cost (RM) 0 600 600 - - - - - 10 1050 600 450 60 45 105 45 20 1450 600 850 30 42.5 72.5 40 30 1800 600 1200 20 40 60 35 40 2100 600 1500 15 37.5 52.5 30 50 2450 600 1850 12 37 49 350 60 2850 600 2250 10 37.5 47.5 40 70 3300 600 2700 8.57 38.57 47.14 45 80 3850 600 3250 7.5 40.625 48.125 55 90 4500 600 3900 6.67 43.34 50 65 100 5250 600 4650 6 46.5 52.5 75 Which time period is the firm operating? Why?
The table below reports production and cost data for a local bakery. Workers 1 2 3 4 5 6 7 8 9 10 Output 12 28 48 72 92 108 120 128 132 134 MPL 12 16 20 24 20 16 12 8 4 2 APL 12.00 14.00 16.00 18.00 18.40 18.00 17.14 16.00 14.67 13.40 VC $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 $700.00 $800.00 $900.00 $1,000.00 AVC $8.33 $7.14 $6.25 $5.56 $5.43 $5.56 $5.83 $6.25 $6.82 $7.46 TC $300.00 $400,00 $500.00 $600.00 $700.00 $800.00 $900.00 $1,000.00 $1,100.00 $1,200,00 ATC $25.00 $14.29 $10.42 $8.33 $7.61 $7.41 $7.50 $7.81 $8.33 $8.96 MC $8.33 $6.25 $5.00 $4.17 $5.00 $6.25 $8.33 $12.50 $25.00 $50.00 Suppose the price of bread is $15 per loaf and the bakery bakes 132 loaves. How much profit are they losing (round your answer to two decimal places)?
Please see the attached two pictures, one for the graph, and the other for the questions.
Question Two: The following data for a small farm operating in a perfectly competitive market are given in the table below. The price is $10 per yogurt. Q TC 100 10 200 20 280 30 330 40 360 50 380 60 390 70 425 80 500 90 610 100 750 Instructions: 1. What is the firm's decision at that price? (whether to produce or to shutdown), justify your answer. 2. Show the range of output at which the firm experience IMR and DMR. 3. Using excel, now suppose the price of strawberry yoghurt decreases to $5.5 per unit, what is the right decision firm should take, (produce or shutdown) justify your answer.
Complete the table below: Output TotalCost(RM) Totalvariablecost(RM) Totalfixedcost(RM)Averagefixedcost(RM)Averagetotalcost(RM)Marginalcost (RM) 0 505 16010 20020 25036 33058 40072 48088 580106 700130 820150 980
Q40
Price per unit sold = $46 Units of Total Product Revenue Total Total Product Revenue 0 1 2 3 4 5 6 7 8 9 10 $0 $46 Total Cost Data Total Total Fixed Variable Cost Cost $60 60 60 60 60 60 60 60 60 60 60 $0 45 85 120 150 185 225 270 325 390 465 Total Cost $60 105 145 180 210 245 285 330 385 450 525 Total Profits TR - TC Average Cost Data AFC $60 $30 $20 $15 $12 $10 $9 $8 $7 $6 AVC (TVC/# units) ATC $45.00 42.50 40.00 37.50 37.00 37.50 38.57 40.63 43.33 50.00 46.50 52.50 $105.00 72.50 60.00 52.50 49.00 47.50 47.14 48.13 Marginal Data MC MR (TC₂- (TR2- Marginal TC₁)/(Q₂- TR1)/(Q2 Profits Q₁₂) Q1)
Output TFC TVC TC MC ATC A 25 25 В 1 25 25 50 25 50 C 2 25 40 65 32.5 3 25 70 95 E 25 110 33.75 F 5 25 160 50 What is the marginal cost of the 4th unit of output? 40 25 50 Cannot be determined.
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