3. Profit maximization using total cost and total revenue curvesSuppose Ana runs a small business that manufactures shirts. Assume that the market for shirts is a perfectly competitive market, and the marketprice is $20 per shirt.The following graph shows Ana's total cost curve.Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first seven shirts that Anaproduces, including zero shirts.TOTAL REVENUE, TOTAL COST, AND PROFIT (Dollars)Total RevenueA125100Total Cost☐Profit2001751507550༔་ཎྜ་ ྴ་སྐྱ ིི་ཐྭ་8་མ་°12 34 5678QUANTITY OF OUTPUT (Shirts)(?)Calculate Ana's marginal revenue and marginal cost for the first seven shirts she produces and plot them on the following graph. Use the blue points(circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost.Note: Be sure to plot marginal values between the appropriate whole unit values. For instance, plot values at 0.5, 1.5, and so on.403530Marginal Revenue(? PRICEAND COST (Dollars per shirt)5TOTAL REVEN012 358QUANTITY OF OUTPUT (Shirts)Calculate Ana's marginal revenue and marginal cost for the first seven shirts she produces and plot them on the following graph. Use the blue points(circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost.Note: Be sure to plot marginal values between the appropriate whole unit values. For instance, plot values at 0.5, 1.5, and so on.30can also be written as12 3 4 578QUANTITY OF OUTPUT (Shirts)Marginal RevenueMarginal Cost(?Ana's profit is maximized when she producesiswhichshirts. When she does this, the marginal cost of the last shirt she produces is $than the price Ana receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one more shirt thanwould maximize her profit) is Sthan the price Ana receives for each shirt she sells. Therefore, Ana's profit-maximizingwhich isquantity corresponds to the intersection of thecurves. Because Ana is a price taker, this last condition

Ana runs a business of shirts. The market for shirts is perfectly competitive.The market price for…

Calculate Ana's marginal revenue and marginal cost for the first seven shirts she produces and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost. Note: Be sure to plot marginal values between the appropriate whole unit values. For instance, plot values at 0.5, 1.5, and so on. 40 35 PRICE AND COST (Dollars per shirt) 10 15 20 25 g 30 5 0 1 2 3 4 5 6 7 QUANTITY OF OUTPUT (Shirts) Marginal Revenue Marginal Cost ? Ana's profit is maximized when she produces is shirts. When she does this, the marginal cost of the last shirt she produces is S which than the price Ana receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one more shirt than would maximize her profit) is S which is than the price Ana receives for each shirt she sells. Therefore, Ana's profit-maximizing quantity corresponds to the intersection of the ▼curves. Because Ana is a price taker, this last condition can also be written as .

Calculate Ana's marginal revenue and marginal cost for the first seven shirts she produces and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost. Note: Be sure to plot marginal values between the appropriate whole unit values. For instance, plot values at 0.5, 1.5, and so on. 40 35 PRICE AND COST (Dollars per shirt) 10 15 20 25 g 30 5 0 1 2 3 4 5 6 7 QUANTITY OF OUTPUT (Shirts) Marginal Revenue Marginal Cost ? Ana's profit is maximized when she produces is shirts. When she does this, the marginal cost of the last shirt she produces is S which than the price Ana receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one more shirt than would maximize her profit) is S which is than the price Ana receives for each shirt she sells. Therefore, Ana's profit-maximizing quantity corresponds to the intersection of the ▼curves. Because Ana is a price taker, this last condition can also be written as .

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Please check if CDE are right, thanks
he total revenue curve reaches its maximum at a quantity of200 refrigerators per year. At this point, the slope of the total revenue curve isequal to zero
Nathan runs a rare book store. Last year, he earned $35,000 in revenue and had explicit costs of $8,000. Nathan could have made $35,000 driving a boat in a water ski show and received an additional $5,000 if he had used the company's inputs in a different way. Calculate Nathan's economic profit. $
Only typed answer
Total Revenue Total C ost Proit/Loss/ Price( P) Quantity (TR) (TC) Break Even $3 5. 2 9. 3 8. 4 11 5. 15 6. 21 30 8. 42 6. 60 10 85 Yummy Cupcakes is a purely competitive firm. The firm's costs are shown in the table above. The market price is $5 (USE THIS TO FILL IN THE PRICE COLUMN) When Yummy Cupcakes produces 1 cupcakel Q-1).the firm : O breaks even incurs a loss O earns profits will shutdown
Using the graph attached, calculate the firm's profits at the profit maximizing output.
①The total cost for producing x items is given by 12x + 3735. Each item is sold for $21. Find the formula for the total items must be sold to break even? revenue. How Many ②Solve the equation x² - 10x = -2x-15 3 A department store will buy 8 items if the price is $40 per item, and 14 items if the price is $28 per item. The Supplier is willing to sell 5 items if the price is $70 per item and 12 items if the price is $140 per item. If the supply and demand functions are linear, find the equilibrium point. invest $10,000 in an account that pays 10% compounded you continuously, how much money will you have in 15 years? (4) If ⑤ het f(x) = 300 √x + 2. Find the average rate of change when x increases from 25 to 100. Calculate derivatives of the following functions. a) 2 2x-3 4x+5 b) (2x5 +1) 9 ⑦Calculate derivatives of the following functions 8 の 2 6x в) че 6) 1) In (3x² + 5x) Calculate the following integral S (8x7 - 12x 5 + 3x² + 4) dx
Use the above figure. Total revenue at the profit-maximizing output is
Please follow instructions and follow graph. Show work
Use the following graphs for questions 22 and 23. At what price would a firm exit the market? (a) Relationship of total cost to total variable cost and total fixed cost (b) Relationship of marginal cost to average total cost, average variable cost, and average fixed cost Total Costs (dollars) 700 Cost 150 Per 140 TC Unit 130 TVC (dollars) 120 MC 600 110 100 500 90 80 400 70 60 ATC 300 TFC 50 AVC 40 AFC 200 30 20 TFC 100 10 AFC 0 1 2 3 4 5 6 7 8 9 10 11 12 0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity of Output Quantity of Output (units per hour) (units per hour) O $20 O $30 $45 $50
The following graph plots the marginal cost (MC) curve, average total cost (ATC) curve, and average variable cost (AVC) curve for a firm operating in the competitive market for jumpsuits. COSTS (Dollars) 80 72 64 56 24 16 8 0 0 8 0 MC ATC AVC Price (Dollars per jumpsuit) 4 8 12 36 48 60 ■ 16 24 32 40 48 56 QUANTITY (Thousands of jumpsuits) ☐ Quantity (Jumpsuits) 64 For every price level given in the following table, use the graph to determine the profit-maximizing quantity of jumpsuits for the firm. Further, select whether the firm will choose to produce, shut down, or be indifferent between the two in the short run. (Assume that when price exactly equals average variable cost, the firm is indifferent between producing zero jumpsuits and the profit-maximizing quantity of jumpsuits.) Lastly, determine whether the firm will earn a profit, incur a loss, or break even at each price. 72 80 Produce or Shut Down? Profit or Loss?
Please Solve In 15mins e-h