4) Assuming a market price of $4, fill in the columns in the following table. What is the profit-maximizing level of production? What are the two ways to determine the profit- maximizing level of production? Total Total Revenue Cost Quantity (TR) (TC) 0 3 1 5 2 3 4 5 6 7 6 9 14 20 28 40 Profit Marginal Revenue (MR) Marginal Cost (MC)

4) Assuming a market price of $4, fill in the columns in the following table. What is the profit-maximizing level of production? What are the two ways to determine the profit- maximizing level of production? Total Total Revenue Cost Quantity (TR) (TC) 0 3 1 5 2 3 4 5 6 7 6 9 14 20 28 40 Profit Marginal Revenue (MR) Marginal Cost (MC)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Figure 12-6 Price (dollars per pound) Market 3 price 2 0 10 20 30 MC ATC D=MR 40 Quantity (thousands of pounds) Figure 12-6 shows the demand, marginal cost (MC) and average total cost (ATC) curves for Jason's House of Apples. Refer to Figure 12-6. Jason is currently producing 20 thousand pounds of apples. To maximize his profit Jason should keep production at 20 thousand pounds. O increase production to the output rate indicated by point e. increase production to the output rate indicated by point d. O decrease production to the output rate indicated by point a.
Price (dollars per soda) 2.50 2.00 1.50 1.00 0.50 Market Price 0 5 10 15 20 25 Quantity (thousands of sodas per month) The supply curve of Coca Cola is given above. The market price is $1.00 per soda. The marginal cost of the 20,000th soda is $0.50. $1.00. more than $1.00. $0.00. S
Price ($) 1000 500 300 0 300 500 Supply Demand What is the total cost of producing 300 iPads? 1000 Quantity
Table 2- The following table presents cost and revenue information for John's Vineyard.- COSTS- REVENUES Marginal Cost Quantity Total Quantity Total Marginal Produced- Cost Demanded Price Revenne Revenne- 0. 0. 0. 80. 1. 50 1. 80. 2. 102- 2. 80- 3. 157. 3. 80 4- 217. 4. 80- 5. 285 5. 80. 6. 365. 6. 80. 7. 462 7. 80- 8. 582. 8. 80. Refer to Table 2. At what quantity does John's Viney ard maximize profits? A 3 B C 7 D 8. CO
Question 2 Using supply and demand analysis, explain the effects of the following on the equilibrium price and quantity bought of a local brand tractors. (a) The publication of reports that the tractors have many defects (b) Income of contractors rises (c) The prices of the tractors fall due to tight competition from imported tractors (d) Contractors expect the price of tractors to fall in the future (e) Government increases import taxes on all imported goods and services
4. Profit maximization in the cost-curve diagram Suppose that the market for candles is a competitive market. The following graph shows the daily cost curves of a firm operating in this market. (Note: Area in blue rectangle is shown in thousands.) 32 28 V 24 ATC AVC MC PRICE (Dollars per candle) 40 36 8 4 0 0 + 2 4 8 6 10 QUANTITY (Thousands of candles) 12 14 16 18. 20 6,000 In the short run, at a market price of $20 per candle, this firm will choose to produce candles per day. 8,000 Profit or Loss (in thousands) ? On the previous graph, 9,000 the blue rectangle (circle symbols) to shade the area (in the 12000 ands) representing the firm's profit or loss if the market price is $20 and the firm chooses to produce the quantity you already selected. Note: In the following question, you should enter a positive number in the numeric entry field. [$ The area (in thousands) of this rectangle indicates that the firm's would be per day.
For a cement firm, the total revenue for the previous month was $6300 The price per unit of cement is $30 What quantity would the firm have sold?