Consider the following demand and cost information on a perfectly competitive firm in the short run: Price per unit (in dollars) Quantity Total Cost (in pounds) (in dollars) 5 7 5 1 17 2 24 3 26 4 29 5 5 33 5 6 38 5 7 44 5 8. 52 What is the profit-maximizing/loss-minimizing output of the firm? What is the amount of the profit/loss? Suppose a perfectly competitive firm in the short run faces an industry price of $10 per unit and its marginal revenue is equal to rising marginal cost at an output of 150 units. The firm's total cost is $2000 and total fixed cost is $900. I. How much output should the firm produce? Explain briefly Suppose fixed costs double to $1800. Should the firm shut down? Explain briefly. II.
Consider the following demand and cost information on a perfectly competitive firm in the short run: Price per unit (in dollars) Quantity Total Cost (in pounds) (in dollars) 5 7 5 1 17 2 24 3 26 4 29 5 5 33 5 6 38 5 7 44 5 8. 52 What is the profit-maximizing/loss-minimizing output of the firm? What is the amount of the profit/loss? Suppose a perfectly competitive firm in the short run faces an industry price of $10 per unit and its marginal revenue is equal to rising marginal cost at an output of 150 units. The firm's total cost is $2000 and total fixed cost is $900. I. How much output should the firm produce? Explain briefly Suppose fixed costs double to $1800. Should the firm shut down? Explain briefly. II.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Consider the following demand and cost information on a perfectly competitive firm in
the short run:
Price per unit
(in dollars)
Quantity
(in pounds)
Total Cost
(in dollars)
7
1
17
24
3
26
4
29
5
5
33
5
38
5
7
44
5
8.
52
What is the profit-maximizing/loss-minimizing output of the firm? What is the amount of
the profit/loss?
Suppose a perfectly competitive firm in the short run faces an industry price of $10 per
unit and its marginal revenue is equal to rising marginal cost at an output of 150 units.
The firm's total cost is $2000 and total fixed cost is $900.
How much output should the firm produce? Explain briefly
Suppose fixed costs double to $1800. Should the firm shut down? Explain briefly.
I.
П.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4268a070-177f-45d0-86bf-cd7239651ef1%2F8f351f02-57e4-4b81-bd26-0138ca86e484%2F1lpd5l_processed.png&w=3840&q=75)
Transcribed Image Text:Consider the following demand and cost information on a perfectly competitive firm in
the short run:
Price per unit
(in dollars)
Quantity
(in pounds)
Total Cost
(in dollars)
7
1
17
24
3
26
4
29
5
5
33
5
38
5
7
44
5
8.
52
What is the profit-maximizing/loss-minimizing output of the firm? What is the amount of
the profit/loss?
Suppose a perfectly competitive firm in the short run faces an industry price of $10 per
unit and its marginal revenue is equal to rising marginal cost at an output of 150 units.
The firm's total cost is $2000 and total fixed cost is $900.
How much output should the firm produce? Explain briefly
Suppose fixed costs double to $1800. Should the firm shut down? Explain briefly.
I.
П.
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