Consider the table below which represents the cost and price schedules facing a perfectly competitive firm that manufactures laptops. Complete the table and use the information provided to indicate what quantity of laptops a perfectly competitive firm will produce. Quantity of the product Price per unit (R) Total profit (R) Marginal cost (R) Total revenue (R) 10 -10 10 -9 9. 2 10 -5 3 10 -3 8. 4 10 -3 10 5 10 -6 13

Consider the table below which represents the cost and price schedules facing a perfectly competitive firm that manufactures laptops. Complete the table and use the information provided to indicate what quantity of laptops a perfectly competitive firm will produce. Quantity of the product Price per unit (R) Total profit (R) Marginal cost (R) Total revenue (R) 10 -10 10 -9 9. 2 10 -5 3 10 -3 8. 4 10 -3 10 5 10 -6 13

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The table below shows the price and cost information for a firm that operates in a perfectly competitive market. Based on this information, what is the profit-maximizing output quantity? Price Quantity Total Cost $8 $8 $8 $8 $8 $8 $8 $6 $10 $15 $21 $28 $35 $45 1 2 3 4 5 6 Profit is maximized at a quantity of type your answer. units, where it is equal to $ type your answer. Is the long run price in this market likely to be higher or lower than the current price of $8? type your answer.
The table shows total cost and total revenue information for a competitive firm. Quantity (units) Total cost ($) Total revenue ($) 0 500 0 1 600 135 2 710 270 3 830 405 4 960 540 5 1,100 675 6 1,250 810 7 1,410 945 8 1,580 1,080 9 1,760 1,215 10 1,950 1,350 Firms making a loss will compare the losses if it shuts down to the losses if it operates in the short run. What quantity will the firm produce if it shuts down in the short run? Output: unitsunits What will the profits be if this firm shuts down? $ What quantity will the firm produce to minimize losses in the short run? unitsunits If this firm chooses to operate at a loss, what will its profits equal? $ If the cost and revenue numbers in the table will continue permanently, what will this firm choose to do? The firm will continue to operate in the short run, and exit the market in the long run. shut down…
Assignment Instructions: Find the Graphs for a Pure Competition Firm Do a Google Images and find the graphs for a perfectly competitive firm. graphs must include the following specific graphs: Find the graph for short run economic loss for the firm. Find the graph for short run economic profit for the firm. Find the graph for long run – normal profit for the firm. Make sure the graphs show the area of economic profit or loss.
The cost curves below are for a firm competing in a perfectly competitive industry. If the market price is $7.50, a profit-maximizing firm would: Price and cost 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 2 MC y A A 1 B a 10 11 12 ATC AVC 13 Quantity Produce between 10 and 11, for a positive economic profit Produce about 9, for an economic profit of over $9 Produce between 10 and 11, for an economic profit of about $0 Produce about 9, for an economic profit of less than $9 Produce about 10, for an economic profit of about $20
$150 $145 $140 MC $135 $130 $125 $120 $115 ATC $110 $105 $100 $95 $90 $85 $80 AVC $75 $70 $65 $60 $55 $50 $45 $40 $35 $30 $25 0 1 2 3 5 6 Quantity Produced 7 8 9 10 11 The graph above shows the cost functions for a perfectly competitive profit maximizing firm. If the market price of the product is $70 per unit, the firm will produce units, will cover make an economic profit of dollars. dollars of its fixed cost, and will
4. A printer paper manufacturer sells its highly standardized product in a perfectly competitive market, at a price of TL50 per box. The firm has a fixed cost of TL30. Fill in the following table and indicate the level of output that maximizes profit. Determine how the profit-maximizing choice of output would change if the fixed cost increased from TL40 to TL60? More generally, explain how the level of fixed cost affects the choice of output. Output (Units) 0 1 2 3 4 5 6 Total Revenue (TL/unit) Total Cost (TL/unit) Profit (TL) Marginal Revenue (TL/unit) Marginal Cost (TL/unit) 50 20 30 42 54 70
Answer the questions based on the table below - Complete the table below. - In which market does this firm operate? Explain your reasons. - Determine the equilibrium output. Calculate whether the firm will it be earning a profit or suffering a loss at equilibrium. Quantity(unit) Total Revenue($) Average Revenue($) MarginalRevenue($) TotalCost($) MarginalCost($) 1 10 5 2 18 11 3 24 16 4 28 20 5 30 23 6 30 25
In the above figure, the perfectly competitive firm's shutdown point is at a price of
Q10 needed Q8 pic is just for reference Question 10 Refer to Table 5-1 and the firm in Question 8, How much profit does the firm make at the chosen quantity? (enter just the number, no $)
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Consider a kettle firm A in a perfectly competitive market. Table 1 shows the quantity produced per hour (Q) and the total cost (TC) in the short run. Quantity 0 12345C70 2 6 8 Total cost 17 30 40 55 75 100 130 165 210 Fixed cost 17 17 17 17 17 17 17 17