Assuming a firrh has this short-run production data below, do the following: a. fill-in the rest of the table b. calculate the profit at price = 68.50 pesos and at price = 47.10 pesos c. draw two conclusions (when the price is 68.50 pesos and when the price is 47.10 pesos) d. answer the question at the very bottom. Php2,000 Php700 Fized Input (Kariable Input (TP (Q) 1 0 17 39 71 106 1 0 1 2 3 4 5 6 7 8 9 134 147 156 156 154 MP . 17 22 32 35 28 13 9 0 -2 AP₁ Short run Production Relationships TFC TVC TC Physical units Monetary amounts Law of diminishing marginal productivity as more units of labor is added to a fixed unit of capital, its marginal productivity decreases. Objective of the Firm: maximize profit. Maximizing profit condition/Minimizing Loss Condition: MR = Price = MC MC AFC AVC ATC TR=Q'P TC= Q ATC Profit TR-TC Frice per unit = 68.50 pe @Price per unit = 47.10 pesos TR TC Profit TR TC Profit

Assuming a firrh has this short-run production data below, do the following: a. fill-in the rest of the table b. calculate the profit at price = 68.50 pesos and at price = 47.10 pesos c. draw two conclusions (when the price is 68.50 pesos and when the price is 47.10 pesos) d. answer the question at the very bottom. Php2,000 Php700 Fized Input (Kariable Input (TP (Q) 1 0 17 39 71 106 1 0 1 2 3 4 5 6 7 8 9 134 147 156 156 154 MP . 17 22 32 35 28 13 9 0 -2 AP₁ Short run Production Relationships TFC TVC TC Physical units Monetary amounts Law of diminishing marginal productivity as more units of labor is added to a fixed unit of capital, its marginal productivity decreases. Objective of the Firm: maximize profit. Maximizing profit condition/Minimizing Loss Condition: MR = Price = MC MC AFC AVC ATC TR=Q'P TC= Q ATC Profit TR-TC Frice per unit = 68.50 pe @Price per unit = 47.10 pesos TR TC Profit TR TC Profit

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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