Assume that the above cost data is for a perfectly competitive firm. Using this data answer the following: (a) If the market equilibrium price that this firm charges is $50, what level of output must this firm produce to maximize its profit? (b) What would be the amount of profit that this firm would earn if it produced at the profit-maximizing level of output? (1)Quantity ofOutput, Q(units)(3)(5)AverageTotal Variable Variable Cost(AVgAverageFixed Cost(4)(8)Average Total Marginal CostCost (ATC)(7)Total FixedCost (S)(6)Total Cost (TC)(AFC)Cost (TVC)$200$0V20030GG220050HH3200604.200E65프20075P.AAKKUU200G95BBVV7200125RCCMMww200165DDNNXX200215EEYY10200275FFPP77Il - - XI

Answer to the question is as follows :

Answered: Assume that the above cost data is for…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

Assume that the above cost data is for a perfectly competitive firm. Using this data answer the following:

(a) If the market equilibrium price that this firm charges is $50, what level of output must this firm produce to maximize its profit?

(b) What would be the amount of profit that this firm would earn if it produced at the profit-maximizing level of output?

(1)
Quantity of
Output, Q
(units)
(3)
(5)
Average
Total Variable Variable Cost
(AVg
Average
Fixed Cost
(4)
(8)
Average Total Marginal Cost
Cost (ATC)
(7)
Total Fixed
Cost (S)
(6)
Total Cost (TC)
(AFC)
Cost (TVC)
$200
$0
V
200
30
GG
2
200
50
HH
3
200
60
4.
200
E
65
프
200
75
P.
AA
KK
UU
200
G
95
BB
VV
7
200
125
R
CC
MM
ww
200
165
DD
NN
XX
200
215
EE
YY
10
200
275
FF
PP
77
Il - - XI

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions