(b) (i) Consider total cost and total revenue given in the following table: Quantity Total Cost ($) 1 3 4 6. 7 8 9. 10 11 13 19 27 37 Total Revenue ($) 8. 16 24 32 40 48 56 (i) Calculate profit for each quantity. How much should the firm produce to maximize profit? (ii) Calculate marginal revenue and marginal cost for each quantity. Graph them. (Hint: Put the points betwe whole numbers. For example, the marginal cost between 2 and 3 should be graphed at 2%.) At what quar do these curves cross? How does this relate to your answer to part (a)? Can you tell whether this firm is in a competitive industry? If so, can you tell whether the industry is in a long-run equilibrium? (8.75) (ii)
(b) (i) Consider total cost and total revenue given in the following table: Quantity Total Cost ($) 1 3 4 6. 7 8 9. 10 11 13 19 27 37 Total Revenue ($) 8. 16 24 32 40 48 56 (i) Calculate profit for each quantity. How much should the firm produce to maximize profit? (ii) Calculate marginal revenue and marginal cost for each quantity. Graph them. (Hint: Put the points betwe whole numbers. For example, the marginal cost between 2 and 3 should be graphed at 2%.) At what quar do these curves cross? How does this relate to your answer to part (a)? Can you tell whether this firm is in a competitive industry? If so, can you tell whether the industry is in a long-run equilibrium? (8.75) (ii)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Consider total cost and total revenue given in the following table:
TABLE IN IMAGE
Calculate profit for each quantity. How much should the firm produce to maximize profit?
(ii) Calculate marginal revenue and marginal cost for each quantity. Graph them. (Hint: Put the points between
whole numbers. For example, the marginal cost between 2 and 3 should be graphed at 2½.) At what quantity
do these
(iii) Can you tell whether this firm is in a competitive industry? If so, can you tell whether the industry is in a
long-run equilibrium? (8.75)
![(b) (i) Consider total cost and total revenue given in the following table:
Quantity
Total Cost ($)
Total Revenue ($)
1
4
6
7
8
10
11
13
19
27
37
8
16
24
32
40
48
56
(i)
Calculate profit for each quantity. How much should the firm produce to maximize profit?
(ii)
Calculate marginal revenue and marginal cost for each quantity. Graph them. (Hint: Put the points betwe
whole numbers. For example, the marginal cost between 2 and 3 should be graphed at 2%.) At what quan
do these curves cross? How does this relate to your answer to part (a)?
Can you tell whether this firm is in a competitive industry? If so, can you tell whether the industry is in a
long-run equilibrium? (8.75)
(ii)
Q3 (a) आय और प्रतिस्थापन प्रभाव का उपयोग करते हुए, इसकी मांग पर एक Giffen वस्तु और निकृष्ट वस्तु की की](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6aaa8a80-6fe8-473f-a5f5-f753319031e9%2F193da8f0-e8d1-4036-afda-f1a1be5ce6ab%2Ffu0qkf4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(b) (i) Consider total cost and total revenue given in the following table:
Quantity
Total Cost ($)
Total Revenue ($)
1
4
6
7
8
10
11
13
19
27
37
8
16
24
32
40
48
56
(i)
Calculate profit for each quantity. How much should the firm produce to maximize profit?
(ii)
Calculate marginal revenue and marginal cost for each quantity. Graph them. (Hint: Put the points betwe
whole numbers. For example, the marginal cost between 2 and 3 should be graphed at 2%.) At what quan
do these curves cross? How does this relate to your answer to part (a)?
Can you tell whether this firm is in a competitive industry? If so, can you tell whether the industry is in a
long-run equilibrium? (8.75)
(ii)
Q3 (a) आय और प्रतिस्थापन प्रभाव का उपयोग करते हुए, इसकी मांग पर एक Giffen वस्तु और निकृष्ट वस्तु की की
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