3. Sam's Soybean is a price-taker. Sam sells each sack of soybean at $12. Complete the table and answer the questions below:- Output TC MC TR MR AR TVC 10 1 21 2 30 3 40 52 5 65 88 (a) Is the firm producing in the short run or long run? Explain. Short run as TC is positive when Q–0, implying that fixed cost is present. (b) What is the relationship between price, AR and MR? P (c) What is the firm's profit maximizing output? (d) How much profit/loss does the firm make?
3. Sam's Soybean is a price-taker. Sam sells each sack of soybean at $12. Complete the table and answer the questions below:- Output TC MC TR MR AR TVC 10 1 21 2 30 3 40 52 5 65 88 (a) Is the firm producing in the short run or long run? Explain. Short run as TC is positive when Q–0, implying that fixed cost is present. (b) What is the relationship between price, AR and MR? P (c) What is the firm's profit maximizing output? (d) How much profit/loss does the firm make?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Solve the attachment

Transcribed Image Text:3. Sam's Soybean is a price-taker. Sam sells each sack of soybean at $12.
Complete the table and answer the questions below:-
Output
TC
MC
TR
MR
AR
TVC
10
1
21
2
30
3
40
52
5
65
88
(a) Is the firm producing in the short run or long run? Explain.
Short run as TC is positive when Q–0, implying that fixed cost is present.
(b) What is the relationship between price, AR and MR?
P
(c) What is the firm's profit maximizing output?
(d) How much profit/loss does the firm make?
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON

Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning

Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education