a. If the market price is $15, what is the revenue at output equal to 4 units? b. What is the total cost at output equal to 3 units? c. What is the marginal cost at output equal to 2 units? d. If the market price is $15, how much output per hour should the firm produce? What is the profit at that level of output?

a. If the market price is $15, what is the revenue at output equal to 4 units? b. What is the total cost at output equal to 3 units? c. What is the marginal cost at output equal to 2 units? d. If the market price is $15, how much output per hour should the firm produce? What is the profit at that level of output?

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

If marginal profit is $33 and marginal revenue is $80 What's the value of Marginal cost
What is the firms profit or loss?
If firms can easily enter and exit a market, then A. firms will earn zero economic profit in the short run. B. firms will produce at minimum average fixed cost in the long run. C. firms will produce where price is greater than marginal cost. D. firms will produce where price is greater than marginal revenue. E. firms will produce at minimum average cost in the long run.
A profit-maximizing firm in a competitive market is currently producing 500 units of output. It has average revenue of $10, average total cost of $8, and fixed costs of $200. a. What is its profit? b. What is its marginal cost? c. What is its average variable cost? d. Is the efficient scale of the firm more than, less than, or exactly 100 units?
I. A company produces at an output level where marginal cost is equal to marginal revenue and has the following revenue and cost levels: Total revenue = $1,450 Total cost = $1,500 Total variable cost = $1,300 What would you suggest? a. Shut down. b. Continue to produce because the loss is less than the total fixed cost. c. Increase production to lower the marginal cost. e. Raise the price. II. At current long-run production levels, the marginal revenue of a competitive firm is $15 and the marginal cost of the firm is $15. If the market is perfectly competitive, the firm should a. cut back on production. b. stop production all together. c. produce more. d. continue producing at current levels.
What is the profit maximizing quantity of output? What price should the firm charge for its output? For that price and quantity does the firm make economic profit, economic loss or breaks even? How do you know? Explain your answer.
Can the firm's marginal revenue really be negative? Why?