19. Answer the question on the basis of the following data confronting a firm:MarginalMarginalRevenueCostOutput012345-B.3.C. 4.D. 5.$1616161616$109131721Refer to the data. If the firm's minimum average variable cost is $10, the firm's profit-maximizing level ofoutput would be:A. 2.

A firm continues to increase its output as long as the additional revenue received from selling one…

19. Answer the question on the basis of the following data confronting a firm: Marginal Cost Marginal Output Revenue 0 1 2 3 4 5 $16 16 16 16 16 B. 3. C. 4. D. 5. $10 9 13 17 21 Refer to the data. If the firm's minimum average variable cost is $10, the firm's profit-maximizing level of output would be: A. 2.

19. Answer the question on the basis of the following data confronting a firm: Marginal Cost Marginal Output Revenue 0 1 2 3 4 5 $16 16 16 16 16 B. 3. C. 4. D. 5. $10 9 13 17 21 Refer to the data. If the firm's minimum average variable cost is $10, the firm's profit-maximizing level of output would be: A. 2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4. Total cost, average cost, and marginal cost in the short run Suppose Kenji runs a small business that manufactures frying pans. Assume that the market for frying pans is a price-taker market, and the market price is $20 per frying pan. The following graph shows Kenji's total cost curve. Use the blue points (circle symbol) to plot total revenue, and the green points (triangle symbol) to plot profit for the first seven frying pans that Kenji produces, including zero frying pans. TOTAL COST AND REVENUE (Dollars) 175 125 100 75 50 25 o $$ D 0 D 1 2 4 5 QUANTITY (Frying pans) Total Cost 7 Total Revenue Profit
Economics Question
Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. Output TC MC ATC 50,800 $170,000 $0.60 100,800 220,000 1.10 150,800 257,500 1.71 200,800 365,500 2.45 Instructions: Enter your answers rounded to two decimal places. a. What is ATC per unit for each level of output listed in the table? Enter your answers in the table above. b. Are there economies of scale in production? Yes c. Suppose that the market price for a bottle of vitamins is $1.71. At that price the total market quantity demanded is 301,600,000 bottles. How many firms will be in this industry? firm(s) d. Suppose that, instead, the market quantity demanded at a price of $1.71 is only 150,800. How many firms will be in this industry? firm(s) e. Review your answers to parts b, c, and d. Does the level of demand determine…
Show all the necessary steps and/or reasoning that lead to your answers. No credits will be given to answers without necessary steps and/or reasoning. 1. Cost figures for a hypothetical firm are given in the following table. Use them for the exercises below. The firm is selling in a perfectly competitive market. AFC Output Fixed Cost 1 2 3 4 5 $50 $50 $50 $50 $50 Variable AVC Cost $30 $50 $80 $120 $170 Total cost ATC MC a. Fill in the blank columns b. What is the minimum price needed by the firm to break even? c. What is the shut down price? d. At a price of $40, what output level would the firm produce? What would its profits be? 2. What can you expect from an industry in perfect competition in the long run? That is, what will the price be? What quantity will be produced? What will be the relation between marginal cost, average cost, and price?
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3. Based on the diagram, answer the following questions. Revenue/cost MC AVC AC 26 AR = MR 23 20 20 Output (1) Total revenue (TR) (i) Total cost (TC) (ii) Profit (iv) Type of profit is earned by this firm? Justify your answer.
Output Marginal Revenue Marginal Cost Ө -- -- 1 $ 16 $ 13 2 16 8 3 16 10 4 16 5 16 15 22 Refer to the data in the accompanying table. If the firm's minimum average variable cost is $12, the firm's profit-maximizing level of output would be Multiple Choice 0. о ○ 2 о 3.
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# Units Produced Total Revenue Total Costs 1 100 50 180 110 250 180 4 290 270 310 380 10. What is the marginal revenue of producing the 2nd unit? a) 50. b) 70. c) 90. d) 80. 2. 5.
Please answer F and show steps for the graph
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