4. Cherry Market The short run equilibrium market price in the perfectly competitive cherry market is: P* = 9 The short run total cost equation of one cherry firm, Charlie's Cherries, is: SRTC = Q? + 3Q + 3 a. Find and graph Charlie's short run average and marginal cost equations: Q+3+Q MC = 20+3 AC = AVC = Q+ 3 b. Identify the firm's short-run supply curve (S) in the diagram. C. Find and show in the diagram the profit-maximizing output, revenue, cost, profit, and producer surplus, Check that PS = N + FC. %3D
4. Cherry Market The short run equilibrium market price in the perfectly competitive cherry market is: P* = 9 The short run total cost equation of one cherry firm, Charlie's Cherries, is: SRTC = Q? + 3Q + 3 a. Find and graph Charlie's short run average and marginal cost equations: Q+3+Q MC = 20+3 AC = AVC = Q+ 3 b. Identify the firm's short-run supply curve (S) in the diagram. C. Find and show in the diagram the profit-maximizing output, revenue, cost, profit, and producer surplus, Check that PS = N + FC. %3D
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Are my values correct? Could I have help graphing?
Transcribed Image Text:2Q2-100
4. Cherry Market
= 0 a sce Q=6
P=75
The short run equilibrium market price in the perfectly competitive cherry market is:
P* = 9
The short run total cost equation of one cherry firm, Charlie's Cherries, is:
SRTC = Q? + 3Q + 3
a. Find and graph Charlie's short run average and marginal cost equations:
QX3 + ê AVC = Q+3
MC = 20+3
AC =
b. Identify the firm's short-run supply curve (S) in the diagram.
C. Find and show in the diagram the profit-maximizing output, revenue, cost, profit, and
producer surplus, Check that PS = N + FC.
Transcribed Image Text:TC = 20
SRTC =Q43Q+3
%3D
TR=P.Q
P- MC
a 3= 27
3
9=2Q13
TC 32+3l8)13
9+9 +3: 21
6=20
Q* = 3
T= TR-TC
TR* =
27
27-21
TC* = 21
AL=
3+3+
AVC= 3+3
AC* =
3+3+1 = 7
TR=F'
AVC* =
PS= (R-TC) + FC
Tレ+FC
N* = 6
6+3=
MC- 2at3
PS =_9
Profit
PS
TR TC
54
SI
47
PMO
HS
42
39
35
33
30
27
24
18
12
2 345 174 10
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