24) Refer to the graph shown. If the firm seeks to maximize profit, it should set a price equal to:Price108164MRMCATC2-0102030 40 50Output per dayA) $ 8.B) $10.5) Which of the following statements is true?C) $ 6.D) $

Step 1:The monopolist maximizes profit at the output where MR = MC.where,MC: Marginal CostMR:…

Answered: 24) Refer to the graph shown. If the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6
Price 2000 Multiple Choice MC P₂ ATC AVC g.opp. 9₂ Quantity Refer to the accompanying diagram. The firm will realize an economic profit if price is MP₂ MP₂ MP,
Suppose a local retailer is running the following sale on jugs of detergent: $20 each or 3 for $56. The total cost of purchasing two jugs is. The marginal cost of the third jug is _____. $60; $56 0 $56; $16 $56; $60 $40; $16 O $16; $40 O
abus ules Marginal Marginal Output Revenue Cost se Materials aw-Hill ct 012 $18 $4 $18 $6 $18 $10 3 $18 $18 4 $18 $26 $37 ns Resources 5 $18 Refer to the data in the accompanying table. If the firm's minimum average variable cost is $17, the firm's profit-maximizing level of output would be. p O 1 03 04 02 200m
$30 $28 $26 $24 $22 $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 0 5 MC АТС AVC MR = P 10 15 20 25 30 35 40 45 50 55 Output (Q) The firm shown in the diagram above will be making a of in the short run. loss; $150 profit; $100 profit; $200 loss; $140
QUESTION 11 Figure: Cost curves for a firm 1Price 19 18 17 16 15 MC 13 12 ATC 1233 6is Quantity Refer to Figure. At the price of $10 per unit, the firm's Total Cost will be Note: If the graph intersections are little off, please take the closet point. O a. $35 O b.$50 C. $33 d. $30
1. A firm in a perfectly competitive industry has fixed costs of FC = 15, marginal costs of MC = 5 + 14g, and average variable costs of AVC = 5 + 7q. (a) What are the firm's variable costs (VC)? (b) What is the firm's total cost function? (c) If the price is $75, how much does the firm supply? (d) Does the firm continue to supply this quantity in the short-run? (e) Suppose there exists a standard market demand function from consumers (downward slopping). Please provide a logical discussion about how the market achieves short-run equilibrium.
Question 8 Suppose Westland is the only cable TV provider in a city. The table below shows the demand schedule the firm faces and its total costs. What is Westland's optimal number of subscribers? O Price ($/month) Typed numeric answer will be automatically saved. Question 9 56 54 52 50 48 Quantity (subscribers) 20,000 24,000 28,000 32,000 36,000 Total cost ($/month) 1,000,000 1,156,000 1,316,000 1,480,000 1,648,000 ♫
3. Suppose each firm's long run average cost curve, for positive levels of output, is given by AC = 0.1 + 0.05y + 5. The marginal cost curve is given by MC = 0.1 + 0.1y. (a) Find the level of output, for which the average cost is minimized. (b) What is the firm's minimum average cost? (c) Suppose you have many identical firms in a long run competitive equilibrium. Demand is p = 13.1 – 0.04Q. What is the market quantity? How many firms are there?
The graph below is for answering the next 5 questions (18 to 22): Price MC ATC $10 R AC EFG Afc AUC AC Quantity L9 At the profit maximizing level of output, when price is $10, The firm Xis earning economic profit. b. Profits per unit-are the greatest. C. Average variable cost equals ZC. d. Allof the above.
Graph TR and TC for the firm Graph TR and TC for the firm Q TFC TVC TC АС MC P TR MR Profit 3 1 5 2 6. 3 8 4 11 5 15 6. 21 7 30 8 42 9. 60 10 85 Complete all the cost columns. Assume price = $8. Complete the rest of the table. (c) Graph TR and TC on the graph up and to the right. (d) For the market graph below on the right, label demand, supply and the prevailing market price. Label the equilibrium market quantity with q*. (e) For the firm graph below to the left, label the axis. PLOT USING THE DATA IN THE TABLE the demand curve the firm faces, the marginal revenue curve, the average cost curve, the marginal cost curve, and the equilibrium price, quantity. Show the profit. Do all the plots give you the same answer? Graph the market Graph the market Graph the firm Graph the firm
Do questions #42,43,44,45, and 46 Do this correctly! Thank you

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24) Refer to the graph shown. If the firm seeks to maximize profit, it should set a price equal to: Price 10 8 16 4 MR MC ATC 2- 0 10 20 30 40 50 Output per day A) $ 8. B) $10. 5) Which of the following statements is true? C) $ 6. D) $