Assume that the price of silk ties in a perfectly competitive market is $21 and that the typical firm confronts the following costs: Quantity (ties per day) 0 1 2 3 4 5 6 7 A 8 9 10 Total Cost Instructions: Enter your responses as a whole number. a. What is the profit-maximizing rate of output for the firm? (Use the profit-maximizing rule.) ties per day b. How much profit does the firm earn at that rate of output? 46 $10 17 26 37 50 66 82 101 122 145 170 c. If the price of ties falls to $15, how many ties should the firm produce? tie nor da

Assume that the price of silk ties in a perfectly competitive market is $21 and that the typical firm confronts the following costs: Quantity (ties per day) 0 1 2 3 4 5 6 7 A 8 9 10 Total Cost Instructions: Enter your responses as a whole number. a. What is the profit-maximizing rate of output for the firm? (Use the profit-maximizing rule.) ties per day b. How much profit does the firm earn at that rate of output? 46 $10 17 26 37 50 66 82 101 122 145 170 c. If the price of ties falls to $15, how many ties should the firm produce? tie nor da

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Use the table Costs for Alina's Apple Pies. If Alina's Apple Pies operates in a perfectly competitive market and the market price for a pie is $18, how many pies should Alina's Apple Pies produce and what is the economic profit or loss per unit?
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USE THE GRAPH TO ANSWER THE FOLLOWING QUESTIONS: (IF REQUIRED, USE THE DISCREET NUMBER OF BARRELS). ANSWERS IN WHOLE NUMBER a. How many barrels of natural-organic oil reflect the lowest minimum average variable cost?b. How much is the price of the natural-organic oil per barrel?c. How much is the fixed cost to produce the natural-organic oil?d. How many barrels of natural-organic oil should the firm produce to maximize its profit?e. At what production level would the marginal cost exceed the average cost?
The following graph plots daily cost curves for a firm operating in the competitive market for instant pots. PRICE (Dollars per instant pot) 100 90 80 70 60 50 40 30 20 10 0 0 D 5 25.00 70.00 Price (Dollars per instant pot) MC 100.00 ATC AVC 10 15 20 25 30 35 40 QUANTITY (Thousands of instant pots) Using the following table, for each price level, calculate the optimal quantity of units for the firm to produce. Using the data from the graph to determine the firm's total variable cost, calculate the profit or loss associated with producing that quantity. Assume that if the firm is indifferent between producing and shutting down, it will choose to produce. (Hint: Select purple points [diamond symbols] on the graph to receive exact average variable cost information.) Quantity (Instant pots) 45 50 Total Revenue Fixed Cost (Dollars) (Dollars) 1,600,000 1,600,000 1,600,000 Variable Cost (Dollars) Profit (Dollars) If the firm shuts down, it must incur its fixed costs (FC) in the short run. In…
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