Consider the market represented by the figure to the right. Suppose this market has one firm. If the firm can only charge a single price, what is this firm's profits (when maximizing profits)? The figure to the right asumes the firm has no fixed costs. The firm earns profits of $ 100. (Enter a numeric response using rounded to two decimal places.) Correspondingly, remaining surplus available to consumers is $. (Enter a numeric response using rounded to two decimal places.) $ per unit 100.00 90.00- 80.00 70.00 60.00 50.00 40.00 30.00- 20.00 10.00 0.00 0 MC ATC MR D 10 20 30 40 50 60 70 80 90 100 Quantity

Consider the market represented by the figure to the right. Suppose this market has one firm. If the firm can only charge a single price, what is this firm's profits (when maximizing profits)? The figure to the right asumes the firm has no fixed costs. The firm earns profits of $ 100. (Enter a numeric response using rounded to two decimal places.) Correspondingly, remaining surplus available to consumers is $. (Enter a numeric response using rounded to two decimal places.) $ per unit 100.00 90.00- 80.00 70.00 60.00 50.00 40.00 30.00- 20.00 10.00 0.00 0 MC ATC MR D 10 20 30 40 50 60 70 80 90 100 Quantity

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

The tables (below) show the willingness to pay by three (competitive) consumers for additional units of some good, and the marginal costs of three (competitive) firms that produce that good. a) Compute the competitive equilibrium quantity and price for this market. Also, compute each consumer's surplus and each firm's profits. b) Now suppose that you have access to the same technology (and competitive input markets) as that of Firm 3. Entering the market (that is, launching a fourth firm) means a fixed (yes, sunk too) cost of $10. Would you decide to enter? (Entry has effects on the market, of course.) c) With the same data, suppose that all three firms merge. That is, now a single corporation controls (and decides on output for) all three firms (now, plants of one single firm). Obtain the output (or, equivalently, the price) that this monopolistic corporation will choose, and evaluate the consequences for the consumers (that is, the effect on the consumer surplus) and for the profits…
Pete sells two different soups (chicken soup and beef soup) in two competitive markets. Suppose the firm's cost function is given by C = ½ q1^2 + ¼ q2^2 - 1/6 (q1)(q2) where q1 is the output of chicken soup and q2 is the output of beef soup. The price of beef soup is $3. a. Find the firm's supply curve for chicken soup. b. Find how the firm's supply of beef soup varies with the price of chicken soup Show work and explain
Recently, the Obama administration proposed a $1.00 per unit (pack) excise tax on cigarettes (which would be imposed legally or statutorily on cigarettes sellers). Some news reports have suggested that the proposed tax would increase cigarettes prices by $1.00 per pack and be paid by smokers (cigarette buyers). Using (separate) competitive supply and demand diagrams of the cigarettes market carefully show and explain TWO extreme demand and supply conditions under which these news reports would be true?
The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a firm are shown in the figure below. The market price is $26. Instructions: Use the tool provided (Pt. A) to identify the profit-maximizing output. Then use the tool "Profit" to draw the area of profit (or loss) that occurs at this level of output. Position this rectangle by dragging on the vertices. Price/Cost ($) 50 r Tools MC 40 Pt. A Profit ATC 30 AVC 20 10 10 20 30 40 50 Quantity Instructions: Round your answer to the nearest whole number. Use a negative sign if necessary. At the profit-maximizing level of output, average total cost is $ and profit is $
Question 2 a) The supply curve of a product is Q = b) The number of kilograms Q of tomatoes harvested from a field in a day is given by the production function, Q = 150L¹/³. Find the profit maximizing number of people to employ on this farm if each kilogram of tomatoes is sold for 20 cedis, and each worker is paid an average wage of 40 cedis per day. c) A firm is breaking even in a competitive market. Is this firm making zero profits? Explain d) A car wash business washes 11,000 cars per year. The price charged per vehicle washed is 10 cedis. The total cost (total economic cost) of washing these 11000 cars each year is given as 120,000 cedis. Included in this total cost is a fixed cost of 15 percent of the 160,000 cedis capital provided by the financier of this car wash. That is, the financier could have earned 15 percent interest on this capital in the money market if he had not used it to set up this car wash. Is this car wash making profits at the end of the year? Compute the…