Calculate Kenji's marginal revenue and marginal cost for the first seven teddy bears he 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. 2)

Calculate Kenji's marginal revenue and marginal cost for the first seven teddy bears he 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. 2)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. You own WYNELL's Fashions, which sells prom dresses. Your firm has the following cost schedule: If vou produce this quantity The average total cost per dress is ... $100 40 $101 41 Your current output is 40 prom dresses, all of which have been sold. You receive a call from an eager potential customer, who offers to pay $150 if you will produce a prom dress for her Calculation space to show your work What would your profit or loss be on the 41st prom dress? (Show your work.)
11. Graph the cost curve below and explain. output (Q) P TFC TVC TC 0 8 50 0 50 10 8 50 100 150 20 8 50 120 170 30 8 50 130 180 40 8 50 135 185 50 8 50 150 200 60 8 50 170 220 70 8 50 195 245 80 8 50 220 270 90 8 50 260 310 100 8 50 310 360 110 8 50 400 450 120 8 50 500 550
Brody's firm produces trumpets in a perfectly competitive market. The table below shows Brody's total variable cost. He has a fixed cost of $240, and the price per trumpet is $60.-Calculate the average total cost of producing 6 trumpets. Show your work. -Calculate the marginal cost of producing the 11th trumpet. -What is Brody's profit-maximizing quantity? Use marginal analysis to explain your answer. -At the profit-maximizing quantity you determined in part (c), calculate Brody's profit or loss. Show your work. -Brody also produces saxophones at a loss in a perfectly competitive market. Draw a correctly labeled graph for Brody's firm showing the following at a market price of $200. -Brody's profit-maximizing quantity of saxophones -Brody's loss, completely shaded Quantity Total Variable cost 6 $120 7 $145 8 $165 9 $220 10 $290 11 $390
Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. What is ATC per unit for each level of output listed in the table? Instructions: Round your answers to 2 decimal places. Output TC MC ATC 25,000 100,000 $ 0.50 50,000 150,000 1.00 75,000 187,500 2.50 100,000 275,500 3.00 Is this a decreasing-cost industry? (Click to select) Suppose that the market price for a bottle of vitamins is $2.5 and that at that price the total market quantity demanded is 75,000,000 bottles. How many firms will there be in this industry? firm(s). Suppose that, instead, the market quantity demanded at a price of $2.5 is only 75,000. How many firms do you expect there to be in this industry? ) firm(s). Review your answers to parts b, c, and d. Does the level of demand determine this industry's market…
Douglas Fur is a small manufacturer of fake-fur boots in Mississauga. The following table shows the company's total cost of production at various production quantities.
Using the following graph of the cost curves for a firm. Complete the statement below. yice MC AC AVC 15 AFC Qutity Which best describes the firms short run capacity? MC = AFC MC = AVC AVC = ATC AVC = AFC MC = AC Using the following graph of the cost curves for a firm. Complete the statement below. yice MC AC AVC 15 10 AFC Qurtity Which price would best describe the firm is making an economic profit? 15 10 8 5 Using the following graph of the cost curves for a firm. Complete the statement below. yice AC AVC 15 10 5 AFC Qurtity Which price would best describe the break even point for this firm? O 15 12.5 10 16 Using the following graph of the cost curves for a firm. Complete the statement below. yice MC AC AVC 15 10 AFC Quantity Which price would best describe the shut down condition for this firm? 15 12.5 16 10 10 5 5
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Profit maximization using total cost and total revenue curves Suppose Caroline runs a small business that manufactures shirts. Assume that the market for shirts is a competitive market, and the market price is $20 per shirt. The following graph shows Caroline's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for shirts quantities zero through seven (inclusive) that Caroline produces. Caroline's profit is maximized when she produces______ shirts. When she does this, the marginal cost of the last shirt she produces is ______, which is (GREATER OR LESS) than the price Caroline 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 _____, which is (GREATER OR LESS) than the price Caroline receives for each shirt she sells. Therefore, Caroline's profit-maximizing quantity corresponds to the…
Question 27 Consider the firm whose MC, AC, AVC, AFC functions are shown in the following graph. (The following is a description of the figure: This figure is a two-axis graph; in the horizontal line we measure output q, and in the vertical line dollars $; there are four curves. The first, MC starts at a positive level when q=0; more precisely, MC(0) is greater than 16 and lower than 30; then MC is decreasing for values of q in between 0 and 50; at 50 MC has a minimum; this minimum is MC(50)=10; after q=50, MC is increasing; in particular MC(100)=16, MC(120)=30. The second curve, AVC, starts at the same level of MC(0); it is decreasing when q is between 0 and 100; in this range AVC is above MC; at q=100, AVC crosses MC; more precisely, AVC(100)=MC(100)=16; for q>100, AVC is increasing and below MC. The third curve, AC, has a positive asymptote at zero, that is, it grows to plus infinity when q is very small; AC is decreasing when q is in between 0 and 120; in this range is above MC;…
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Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. What is ATC per unit for each level of output listed in the table? Instructions: Round your answers to 2 decimal places. Output TC MC ATC 25,100 101,000 $ 0.51 50,100 151,000 1.01 75,100 188,500 2.51 100,100 276,500 3.01 Is this a decreasing-cost industry? (Click to select) Suppose that the market price for a bottle of vitamins is $2.51 and that at that price the total market quantity demanded is 82,610,000 bottles. How many firms will there be in this industry? ) firm(s). Suppose that, instead, the market quantity demanded at a price of $2.51 is only 75,100. How many firms do you expect there to be in this industry? firm(s). Review your answers to parts b, c, and d. Does the level of demand determine this industry's market…