6. Ch. 13 Problems and Applications Q3 Consider total cost and total revenue, given in the following table: In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.) Total Cost Marginal Cost (Dollars) (Dollars) Total Revenue Marginal Revenue (Dollars) (Dollars) Quantity 10 05 9 03 04 8 7 3 0 1 In order to maximize profit, how many units should the firm produce? Check all that apply. 2 1 4 0 2 3 In the previous table, enter marginal revenue and marginal cost for each quantity. 6 This firm 5 7 On the following graph, use the green points (triangle symbol) to graph the marginal-revenue curve, then use the orange points (square symbol) to plot the marginal-cost curve. (Note: Be sure to plot from left to right and to plot between integers. For example, if the marginal cost of increasing production from 1 unit to 2 units is $5, then you would plot a point at (1.5, 5).) 0 6 6 8 10 13 17 24 32 42 1 O True O False 2 3 4 Quantity 0 7 14 21 28 35 42 49 5 6 True or False: The industry is in a long-run equilibrium. 7 The marginal-revenue curve and the marginal-cost curve cross at a quantity Marginal Revenue Δ in a competitive industry, because marginal revenue is Marginal Cost Profit (Dollars) O (?) as quantity increases.
6. Ch. 13 Problems and Applications Q3 Consider total cost and total revenue, given in the following table: In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.) Total Cost Marginal Cost (Dollars) (Dollars) Total Revenue Marginal Revenue (Dollars) (Dollars) Quantity 10 05 9 03 04 8 7 3 0 1 In order to maximize profit, how many units should the firm produce? Check all that apply. 2 1 4 0 2 3 In the previous table, enter marginal revenue and marginal cost for each quantity. 6 This firm 5 7 On the following graph, use the green points (triangle symbol) to graph the marginal-revenue curve, then use the orange points (square symbol) to plot the marginal-cost curve. (Note: Be sure to plot from left to right and to plot between integers. For example, if the marginal cost of increasing production from 1 unit to 2 units is $5, then you would plot a point at (1.5, 5).) 0 6 6 8 10 13 17 24 32 42 1 O True O False 2 3 4 Quantity 0 7 14 21 28 35 42 49 5 6 True or False: The industry is in a long-run equilibrium. 7 The marginal-revenue curve and the marginal-cost curve cross at a quantity Marginal Revenue Δ in a competitive industry, because marginal revenue is Marginal Cost Profit (Dollars) O (?) as quantity increases.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:6. Ch. 13 Problems and Applications Q3
Consider total cost and total revenue, given in the following table:
In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.)
Total Cost Marginal Cost
Quantity (Dollars) (Dollars)
Marginal Revenue
(Dollars)
Revenue and Costs
03
04
05
06
In order to maximize profit, how many units should the firm produce? Check all that apply.
10
9
8
In the previous table, enter marginal revenue and marginal cost for each quantity.
7
0
1
2
3
4
3
On the following graph, use the green points (triangle symbol) to graph the marginal-revenue curve, then use the orange points (square symbol) to
plot the marginal-cost curve. (Note: Be sure to plot from left to right and to plot between integers. For example, if the marginal cost of increasing
production from 1 unit to 2 units is $5, then you would plot a point at (1.5, 5).)
2
5
6
7
1
0
0
This firm
6
8
10
13
17
24
32
42
1
O True
O False
+
2
Total Revenue
(Dollars)
3
4
Quantity
0
7
14
21
28
35
42
49
5
6
True or False: The industry is in a long-run equilibrium.
The marginal-revenue curve and the marginal-cost curve cross at a quantity
7
Marginal Revenue
Marginal Cost
Profit
(Dollars)
in a competitive industry, because marginal revenue is
(?)
as quantity increases.
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