11. Suppose Sam sells apples, picked from his apple tree, in a competitive market. Assume all apples are equal in quality, but grow at different heights on the tree. Sam, being fearful of heights, demands greater compensation the higher he goes: So for him, the cost of grabbing an apple rises higher and higher, the higher he must climb, as shown in the Total Cost column in the accompanying table. The market price of an apple is $0.50. Complete the table on a separate piece of paper or in a spreadsheet. Apples 1 Marginal Cost $0.10 Marginal Revenue $0.50 Change in Profit $0.40 Total Cost $0.10 $0.22 $0.50 2 A C 3 E F $1.00 G H $1.73 $2.78 K L M b. Sam would first pick apples that are a. Sam's marginal revenue for selling apples is $ c. The data suggest that the marginal cost of apples is

11. Suppose Sam sells apples, picked from his apple tree, in a competitive market. Assume all apples are equal in quality, but grow at different heights on the tree. Sam, being fearful of heights, demands greater compensation the higher he goes: So for him, the cost of grabbing an apple rises higher and higher, the higher he must climb, as shown in the Total Cost column in the accompanying table. The market price of an apple is $0.50. Complete the table on a separate piece of paper or in a spreadsheet. Apples 1 Marginal Cost $0.10 Marginal Revenue $0.50 Change in Profit $0.40 Total Cost $0.10 $0.22 $0.50 2 A C 3 E F $1.00 G H $1.73 $2.78 K L M b. Sam would first pick apples that are a. Sam's marginal revenue for selling apples is $ c. The data suggest that the marginal cost of apples is

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

25. A firm produces the output y using two inputs x₁ and x2 in non-negative quantities through the production relationship: y = g(x1,x2)=xx₁₂ The firm obtains a price of py > 0 per unit of y that it sells. It has available an inventory of K₁ units of the input x₁ and K2 units of the input x2. More units of x₁ and x2 may be purchased from the market at the unit prices of p1 > 0 and p2 > 0, respectively. Alternatively, the firm can also sell any unused amount of its inputs to the market at these prices. 6 (a) Describe the firm's profit-maximization problem, and derive the equations that define the criti- cal points of the Lagrangean L. (b) Assuming py = P₁ = P2 = 1, K₁ = 4, and K₂ = 0, solve for the firm's optimal level of output y. (c) Assume again that py = p₁ = p2 = 1, but suppose now that the values of K₁ and K₂ are interchanged, i.e., we have K₁ = 0 and K₂ = 4. Is the firm's new optimal output level different from the old level? Why or why not?
5
Hi, Please answer the attached question. Thanks!
4. Profit maximization in the cost-curve diagram Suppose that the market for candles is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. Hint: After placing the rectangle on the graph, you can select an endpoint to see the coordinates of that point.
The following graph plots the marginal cost (MC) curve, average total cost (ATC) curve, and average variable cost (AVC) curve for a firm operating in the competitive market for jumpsuits. COSTS (Dollars) 80 72 64 56 24 16 8 0 0 8 0 MC ATC AVC Price (Dollars per jumpsuit) 4 8 12 36 48 60 ■ 16 24 32 40 48 56 QUANTITY (Thousands of jumpsuits) ☐ Quantity (Jumpsuits) 64 For every price level given in the following table, use the graph to determine the profit-maximizing quantity of jumpsuits for the firm. Further, select whether the firm will choose to produce, shut down, or be indifferent between the two in the short run. (Assume that when price exactly equals average variable cost, the firm is indifferent between producing zero jumpsuits and the profit-maximizing quantity of jumpsuits.) Lastly, determine whether the firm will earn a profit, incur a loss, or break even at each price. 72 80 Produce or Shut Down? Profit or Loss?
give everything in ms excel steps for the following (Profit Model) The demand for airline travel is quite sensitive to price. Typically, there is an inverse relationship between demand and price; when price decreases, demand increases and vice versa. One major airline has found that when the price (P) for a round trip between Chicago and Los Angeles is $500, the demand (D) is 700 passengers per day. When the price is reduced to $300, demand is 1,000 passengers per day. a. Plot these points on a coordinate system and develop a function that relates demand to price. b. Develop a mathematical model that will determine the total revenue as a function of price. c. Provide a recommendation to the airline company about the price that should be selected for the round trip between Chicago and Los Angeles such that their revenue is maximized. Describe how you have reached to this recommendation? (your solution may not be the best solution but should be a good solution).
Price ($/slice) For the pizza seller whose marginal, average variable, and average total cost curves are shown in the graph below, what is the profit- maximizing level of output and how much profit will this producer earn if the price of pizza is $2.50 per slice? Instructions: In the graph below, label all three curves by clicking on the dropdown to select the appropriate label. Then, indicate the profit-maximizing level of output on the graph. 3.50 3.25 3.00 2.75 2.50 2.25 2.00 1.75 1.50 1.25 1.00 0.75 0.50 0.25 0 Cost Curves Tools -O Select ▼ Select ▼ Select ▼ Q* 100 200 300 400 500 600 700 800 900 Quantity (slices/day)
Use the graph above to answer these questions: What is the profit-maximizing level of output? What is the economic profit? What is the per-unit amount of profit at the profit-maximizing level of output?
Saved From 2010 to 2012, Johnny Deer exclusively grew com. Under the Food, Conservation, and Energy Act of 2008, Deer Multiple Choice was allowed to grow whatever crop he wanted in the next year, but would only receive direct payments from the federal government if the price of com fell below a targeted price had to grow something other than com the next year to qualify for direct payments from the federal government. was required to grow.com in the next year in order to receive direct payments from the federal government was eligible to receive countercyclical payments of the price of com fell below a targeted price, even though he did not grow corn in the next year
Using the data in the following table, show what happens to the firm's output choice and profit if the fixed cost of production increases from $100 to $150 to $170, where q is quantity and C is total cost. Assume that the price of output is $62. MC q 0 1 2 3 4 5 6 7 8 9 10 11 If the fixed cost of production is $100, then output will be 50 28 20 14 18 20 22 38 45 55 65 C (FC = $100) 100 150 178 198 212 230 250 272 C (FC = $150) 150 200 228 248 262 280 300 322 310 360 355 405 410 460 475 525 units (enter your response using an integer) C (FC = $170) 170 220 248 268 282 300 320 342 380 425 480 545
PLEASE SUBMIT AN IMAGE OF THE REQUESTED ILLUSTRATION DISCUSSED BELOW. (PLEASE MAKE SURE YOU LABEL ALL APPROPRIATE COMPONENTS AND USE CORRECT NUMERICAL SCALES FOR YOUR GRAPH). The table below illustrates the linear supply and demand curves for the high-end electric car market in Yakima. Now, if we assume the market for electric cars in Yakima is an efficient market, please illustrate (graph) this market and label the resulting functions and surpluses (yes, do not forget about labeling the surpluses) Quantity Supplied (In units) 0 40 80 120 160 200 240 Price $0.00 $15,000.00 $30,000.00 $45,000.00 $60,000.00 $75,000.00 $90,000.00 Quantity Demanded (In units) 480 400 320 240 160 80 0
Explain the gains from trade that arise for both buyers and sellers in the following transactions: a. Neighbors Jordan and Chelsea are both working parents. They are able to hire a single babysitter to care for both of their toddlers for 75% of what they would collectively have to pay two separate babysitters. b. Elijah decides that his family should eat more healthy meals, but they are short on time. He buys a subscription that sends healthy preplanned meals to his home three times a week. c. Callie accepts an extra shift at work and hires a cleaning service to clean her apartment.