a. Johnson's pig farm faces a demand curve given by Q = 40 - 2P and has a constant marginal and average cost of $15.50 per pig reared. Complete the table below using the information provided How many pigs will the farm produce in order to maximize profits? Explain briefly why this is so. Quantity P TR MR TC Profit 1 2 3 4 5 7 8

a. Johnson's pig farm faces a demand curve given by Q = 40 - 2P and has a constant marginal and average cost of $15.50 per pig reared. Complete the table below using the information provided How many pigs will the farm produce in order to maximize profits? Explain briefly why this is so. Quantity P TR MR TC Profit 1 2 3 4 5 7 8

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.1P

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Johnson’s pig farm faces a demand curve given by Q = 40 – 2P and has a constant marginal and average cost of $15.50 per pig reared. i. Complete the table below using the information provided.ii. How many pigs will the farm produce in order to maximize profits?Explain briefly why this is so. Quantity P TR MR TC Profit12345678
The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC ATC of Ear Buds ($) ($) 20 1.00 25 2.00 1.20 30 2.46 1.41 35 3.51 1.71 40 4.11 2.01 45 5.43 2.39 50 5.99 2.75 55 8.47 3.27
Johnson’s pig farm faces a demand curve given by Q = 40 – 2P and has a constant marginal and average cost of $15.50 per pig reared. Complete the table below using the information provided. How many pigs will the farm produce in order to maximize profits? Explain briefly why this is so. Quantity P TR MR TC Profit 1 2 3 4 5 6 7 8
The marginal and average total cost curves for barbers in an area are cosntant at $12.00/haircut. The daily demand curve for haircuts in the area is given by: P = 22 - 0.001Qd where P is the price in dollars per haircut and Qd is the daily quantity demanded in number of haircuts. Haircuts are provided in a perfectly competitive market and each barber can provide exactly 25 haircuts daily. Suppose that the government decides to limit the number of barbers to 320. Each year, barbers must obtain a government-issued license to cut hair. Based upon the previous information: a. What will be the long-run equilibrium price for a haircut given there are only 320 licensed barbers?b. How much economic profit will each licensed barber earn daily?