No hand written solution and no image 3. Consider total cost and total revenue given in the following table.QuantityTotal CostTotalRevenue0$8S$0198210163112441332519406274873756a. Calculate profit for each quantity. How much should the firm produce to maximizeprofit?b. Calculate marginal revenue and marginal cost for each quantity, Graph them. (Hint: Putthe points between whole numbers. For example, the marginal cost between 2 and 3should be graphed at 2.5.) At what quantity do these curves cross? How does this relate toyour answer in part a? c. Can you tell whether this firm is in a competitive industry? If so, can you tell whether theindustry is in a long-run equilibrium?1

Cost: The term cost implies the situation under which a firm occurs different expenses during the…

3. Consider total cost and total revenue given in the following table. Quantity Total Cost Total Revenue 0 profit? $8 $0 9 8 2 10 16 3 11 24 4 13 32 5 19 40 6 27 48 a. Calculate profit for each quantity. How much should the firm produce to maximize 7 37 56

3. Consider total cost and total revenue given in the following table. Quantity Total Cost Total Revenue 0 profit? $8 $0 9 8 2 10 16 3 11 24 4 13 32 5 19 40 6 27 48 a. Calculate profit for each quantity. How much should the firm produce to maximize 7 37 56

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Profit Maximization

Economic activity is related to the use of scarce resources of the economy that are used for producing goods and services which are required to satisfy various demands of the people. In other words, it can be said that it is all about satisfying the unlimited demands of individuals with the limited resources available. The production decision is taken by the producers or the firms. In economics, the terms ‘producers’, ‘suppliers’, and ‘firms’ are interchangeable. Now the question arises, what does a firm actually mean?

Question

No hand written solution and no image

3. Consider total cost and total revenue given in the following table.
Quantity
Total Cost
Total
Revenue
0
$8
S
$0
1
9
8
2
10
16
3
11
24
4
13
32
5
19
40
6
27
48
7
37
56
a. Calculate profit for each quantity. How much should the firm produce to maximize
profit?
b. Calculate marginal revenue and marginal cost for each quantity, Graph them. (Hint: Put
the points between whole numbers. For example, the marginal cost between 2 and 3
should be graphed at 2.5.) At what quantity do these curves cross? How does this relate to
your answer in part a?

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?
1

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