What would the answer be for 3 and 4? **Image Transcription for Educational Website****Figure 8.8: Cost and Revenue Curves***Graph Explanation:*The graph in Figure 8.8 illustrates the relationship between various cost and revenue curves as they relate to the production of soybeans. The x-axis represents the quantity of output, measured in bushels of soybeans (q), ranging from 0 to 1,400 units. The y-axis represents cost per unit, ranging from $0 to $12.- **MC (Marginal Cost):** This curve typically shows how the cost of producing an additional unit of output changes as production increases.- **ATC (Average Total Cost):** This represents the average cost of production per unit at different output levels.- **P = MR (Price = Marginal Revenue):** This line represents the price, which is equal to the marginal revenue in a perfectly competitive market.*Questions:*3) Refer to Figure 8.8 (above). This farmer's profit-maximizing level of output is ______ units of output. - A) 200 - B) 700 - C) 1,000 - D) 1,4004) Refer to Figure 8.8. What is the total cost of producing the profit-maximizing level of output? - A) $9 - B) $1,000 - C) $5,600 - D) $9,000(Note: Further information may be required to solve these questions, such as interpreting derived total cost and revenue from the graph.)Please ensure proper understanding of microeconomic concepts related to cost, revenue, and profit maximization while analyzing the graph.

The market structure would result in the determination of the market and the price in the market. The firm would always result in profit maximisation and the cost minimization in the market. The firm would result in taking marginal cost and the marginal revenue and the marginal cost which would result in the determination of the output and the price. The firm would result in the maximisation of the difference between the revenue and the cost. 3) The profit maximisation would result in the marginal revenue equal to the marginal cost. The marginal revenue and the marginal cost would result in the output and the output is 700 and the cost is $12 per unit. Thus, the option b is correct. 4) The total cost of producing the units would be $8 per unit and the total output is 700. Thus, the total cost would be $8 times 700 which is $5,600. Thus, the option c is correct.

Answered: $4 MC ATC 12 P = MR 9. 8. 2 200 700…

Business

Economics

$4 MC ATC 12 P = MR 9. 8. 2 200 700 1,000 1,400 q Bushels of soybeans Figure 8.8 3) Refer to Figure 8.8 (above). This farmer's profit-maximizing level of output is units of output. Cost per unit

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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