Big Top is the only circus in the nation. The table sets out the demand schedule for circus tickets and the cost schedule for producing the circus. What is Big Top's profit-maximizing price, output and economic profit if it charges a single price for all tickets? C Big Top's profit-maximizing output is Big Top's profit-maximizing price is $ >>> Answer to 2 decimal places. tickets a show. a ticket. When Big Top produces the profit-maximizing output and charges the profit-maximizing price, economic profit is $. >>> If the firm incurs an economic loss, indicate the loss with a minus sign. If the firm makes an economic profit, do not include a plus sign. RA Price (dollars per ticket) 10 SBT65432 9 8 7 Quantity (tickets per show) 0 100 200 300 400 500 600 700 800 Total cost (dollars per show) 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

Big Top is the only circus in the nation. The table sets out the demand schedule for circus tickets and the cost schedule for producing the circus. What is Big Top's profit-maximizing price, output and economic profit if it charges a single price for all tickets? C Big Top's profit-maximizing output is Big Top's profit-maximizing price is $ >>> Answer to 2 decimal places. tickets a show. a ticket. When Big Top produces the profit-maximizing output and charges the profit-maximizing price, economic profit is $. >>> If the firm incurs an economic loss, indicate the loss with a minus sign. If the firm makes an economic profit, do not include a plus sign. RA Price (dollars per ticket) 10 SBT65432 9 8 7 Quantity (tickets per show) 0 100 200 300 400 500 600 700 800 Total cost (dollars per show) 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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*Suppose that the development of a new droughtresistanthybrid seed corn leads to a 50 percent increase in the averageyield per acre without increasing the cost to the farmers who usethe new technology. If the producers in the corn production industrywere price takers, what would happen to the following?a. the price of cornb. the profitability of corn farmers who quickly adopt thenew technologyc. the profitability of corn farmers who are slow to adopt thenew technologyd. the price of soybeans, a substitute product for corn
If firms can easily enter and exit a market, then A. firms will earn zero economic profit in the short run. B. firms will produce at minimum average fixed cost in the long run. C. firms will produce where price is greater than marginal cost. D. firms will produce where price is greater than marginal revenue. E. firms will produce at minimum average cost in the long run.
Figure 12-6 Price (dollars per pound) Market 3 price 2 0 10 20 30 MC ATC D=MR 40 Quantity (thousands of pounds) Figure 12-6 shows the demand, marginal cost (MC) and average total cost (ATC) curves for Jason's House of Apples. Refer to Figure 12-6. Jason is currently producing 20 thousand pounds of apples. To maximize his profit Jason should keep production at 20 thousand pounds. O increase production to the output rate indicated by point e. increase production to the output rate indicated by point d. O decrease production to the output rate indicated by point a.
I. A company produces at an output level where marginal cost is equal to marginal revenue and has the following revenue and cost levels: Total revenue = $1,450 Total cost = $1,500 Total variable cost = $1,300 What would you suggest? a. Shut down. b. Continue to produce because the loss is less than the total fixed cost. c. Increase production to lower the marginal cost. e. Raise the price. II. At current long-run production levels, the marginal revenue of a competitive firm is $15 and the marginal cost of the firm is $15. If the market is perfectly competitive, the firm should a. cut back on production. b. stop production all together. c. produce more. d. continue producing at current levels.
Dollars A BC O Hi K O G O Multiple Choice I ELM N MC MR Quantity Refer to the diagram. At the profit-maximizing level of output, the firm will realize ATC Demand an economic profit of A-B-H-J. a loss of GH per unit. an economic profit of A-C-G-J. a loss of JH per unit.
Perfect Competition MC - Marginal Cost MR - Marginal Revenue ATC - Average Total Cost Refer to the figure above. If this firm is producing the profit-maximizing quantity and selling it at the profit-maximizing price, the firm's total revenue will be: $240 $90 $60 $180
Price or Cost(dollars per unit) Pc MR Later C2 MR B MC Demand QE QC QB QA Later ATC Demand Quantity (units per period) 3. Refer to the graph above. Identify each of the following market outcomes: a. Short-run equilibrium output in perfect competition. b. Long-run equilibrium output in perfect competition. c. Long-run equilibrium price in perfect competition. d. Long-run equilibrium output in monopoly. e. Long-run equilibrium output in monopolistic competition.
Use the table below listing Average Total Cost (ATC)d and Marginal Cost (MC) for a firm in perfect competition to answer the following questions. Quantity ATC MC 1 17.5 15 14.3 12 3 10 10 4 16 20 22 31 In each scenario determine if the firm is profitable, breaks even, or incurs a loss. 1. If market price is $8, the firm 2. If market price is $14, the firm 3. If market price is $10, the firm
Tommy runs a take-out pizza outlet called Healthy Pizza, which is located in a strip mall where there is a lot of parking available. Tommy sells only one type of pizza - a Loaded Vegetarian Pizza. The monthly fixed costs related to making and selling this pizza are: advertising $500, space and machine rental $1500; monthly salary and other costs are also fixed at $2000. The variable costs involved in making and selling each pizza is $4 per pizza, regardless of the monthly quantity produced or sold. Tommy directly competes with a children's pizza place, a meat lover's pizza parlour, as well as other takeout restaurants all located within a three-block radius. Based on past experience, Tommy estimates the monthly demand for his Loaded Vegetarian Pizza as follows, depending on the pizza price. Tommy's Pizza: Costs and Revenues MR Price per Pizza ($) Quantity Sold TR (ATR/AQ) MC 18 3200 57600 17 3600 61200 16 4000 64000 15 4400 66000 14 4800 67200 What is the profit maximizing quantity of…
3. Johnny Rockabilly has just finished recording his latest CD. His record company's marketing department determines that the demand for the CD is as follows: Price Number of CDs $24 10 000 22 20 000 20 20 30 000 18 40 000 16 50 000 14 60 000 The company can produce the CD with no fixed cost and a variable cost of $5 per CD. a. Find total revenue for quantity equal to 10 000, 20 000, and so on. What is the marginal revenue for each 10 000 increase in the quantity sold? b. What quantity of CDs would maximize profit? What would be the price? What would be the profit? c. If you were Johnny's agent, what recording fee would you advise Johnny to demand from the record company? Why?
c. Lin's makes fortune cookies. Anyone can make and sell fortune cookies, so there are dozens of producers. All fortune cookies are the same and buyers and sellers know this fact. In what type of market does Lin's operate? What determines the price of fortune cookies? What determines Lin's marginal revenue? d. What is the shape of the AFC (average fixed cost) curve and why does it have this shape?
The number of chairs that Cooper's Millworks can sell per day is given by the table below. Tables Sold Daily. Price Total Revenue Marginal Revenue Average Revenue 1 2 3 300 280 260 What is the missing value A? Answer: 300 560 A 300 260 B 110 280 C