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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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