21 $30.00 $25.00 :of $20.00 $15.00 LRATC = LRMC $10.00 $5.00 Demand = P MR $0.00 50 100 150 200 250 300 Output (Q) The diagram above shows demand and long-run cost curves for a firm that has market power and can set its own price. If the firm must charge the same price to each buyer (it cannot price discriminate), how much total profit will the firm make at its profit maximizing output level? Select one: а. $1,000 O b. $2,000 O c. $500 d. $2,500

21 $30.00 $25.00 :of $20.00 $15.00 LRATC = LRMC $10.00 $5.00 Demand = P MR $0.00 50 100 150 200 250 300 Output (Q) The diagram above shows demand and long-run cost curves for a firm that has market power and can set its own price. If the firm must charge the same price to each buyer (it cannot price discriminate), how much total profit will the firm make at its profit maximizing output level? Select one: а. $1,000 O b. $2,000 O c. $500 d. $2,500

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Part C D
Problem two Consider the total cost and total revenue given in the following table: Total Total Quantity cost Revenue 0 1 2 3 4 5 6 7 8 9 10 11 13 19 27 37 0 8 16 24 32 40 48 56 a) Calculate the profit for each quantity. How much should the firm produce to maximize profit? b) Calculate the marginal revenue and marginal cost for each quantity. Graph them. c) Can you tell whether this firm is in a competitive industry? If so, can you tell whether the industry is in a long-run equilibrium?
In the individual firm graph below, please circle the Golden Rule/profit maximizing/loss minimizing point on the individual firm graph. In the individual firm graph below, please circle the total cost at the Golden Rule/profit maximizing/loss level of output.
Using the table for a firm (NOTE: You should use the rule of profit maximization), Price (S) Q (Demand) TR 26 1 22 2 18 3 14 10 6 4 5 6 TC 26 34 44 56 70 86 MR ΝΑ MC ΝΑ 15. Complete the table. 16. Using the table, draw the demand curve, MR curve, and MC curve in one diagram. 17. Determine the output and price of the profit-maximizing firm. (NOTE: you should explicitly use MR, MC for profit-max condition.) 18. Why can the firm not charge higher than the price you choose in #17? 19. Determine the profit of the proft-maximizing firm. 20. Determine the profit of the proft-maximizing firm in the long run.
$150 $145 $140 MC $135 $130 $125 $120 $115 ATC $110 $105 $100 $95 $90 $85 $80 AVC $75 $70 $65 $60 $55 $50 $45 $40 $35 $30 $25 0 1 2 3 5 6 Quantity Produced 7 8 9 10 11 The graph above shows the cost functions for a perfectly competitive profit maximizing firm. If the market price of the product is $70 per unit, the firm will produce units, will cover make an economic profit of dollars. dollars of its fixed cost, and will
MC Price AC £/unit AVC D2 D3 D1 D4 Quantity/ week Figure 9 Cost curves for a price-taker firm Figure 9 shows a price-taker firm, with average cost AC, average variable cost AVC, and marginal cost MC curves. Select the demand curve shown on Figure 9 to represent a firm making only normal profit. Select one: D3 D4 O D2 O D1
DuopolyMarket for mechanical pencils can be described by the following demand schedule:Price | Number of pencils demanded$6 | 80$5 | 200$4 | 320$3 | 440$2 | 560$1 | 680$0 | 800The fixed cost is $340, while the variable cost is $0.50.a) For each price, find the total revenue, the total cost, and the profit.b) If the market was under perfect competition, what would be the price and the quantity ofpencils traded in the long run? Why?c) If there was only one seller on the market, what would be the price and the quantity ofpencils traded? Why?d) If there were two firms on the market and they agreed to cooperate, how much would eachfirm need to produce? Follow the procedure outlined in the lecture and show that the otherfirm would prefer to deviate from the agreement.e) When the firms deviate from the agreement, there is a new optimal level of output. Showwhether the firms have an incentive to deviate from that level?f) If there were two firms on the market, what would be the price and the…
Please answer F and show steps for the graph
Market Representative Firm S1 MC A my a MR = P $3.50 - - АТС $2.50 b. AVC D1 50,000 350 400 Quantity (Q) Output (Q) The diagram above depicts overall market supply and demand on the left, and the cost curves for a representative firm supplying in that market on the right. At the price $3.50, the firm: should shutdown. O is earning a negative economic profit (loss). is making neither a profit nor a loss. It is breaking even. O is earning a positive economic profit.
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The graph attached illustrates the Demand, Marginal Revenue, Marginal Costs, Average Total Costs and Average variable Cost curves for a firm in a perfectly competitive market. What is the Optimum level of the output for the firm and what is the maximum price the firm can charge? How do you know? At this price and output combination does the firm make economic profit of economic loss? Explain your answer. Calculate the economic profit or loss? Show your calculations.
Consider a kettle firm A in a perfectly competitive market. Table 1 shows the quantity produced per hour (Q) and the total cost (TC) in the short run. Quantity 0 12345C70 2 6 8 Total cost 17 30 40 55 75 100 130 165 210 Fixed cost 17 17 17 17 17 17 17 17