Figure 3 Use this figure for questions 29-32. Price MC ATC Demand 140 123.33 90 56.67 100 133.33 Quantity In order to maximize its profit, the firm will choose to produce O 100 units of output, and its profit will be positive. 100 units of output, and its profit will be zero. O 133.33 units of output, and its profit will be negative. MR

Figure 3 Use this figure for questions 29-32. Price MC ATC Demand 140 123.33 90 56.67 100 133.33 Quantity In order to maximize its profit, the firm will choose to produce O 100 units of output, and its profit will be positive. 100 units of output, and its profit will be zero. O 133.33 units of output, and its profit will be negative. MR

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

Q2
Refer to the table below. How much profit would this firm make if it produces 2 units of goods? Q P TR MR TC MC 0 $30 0 - $15 - 1 $30 $30 $30 $25 $10 2 $30 $60 $30 $40 $15 3 $30 $90 $30 $60 $20 4 $30 $120 $30 $85 $25 5 $30 $150 $30 $115 $30 6 $30 $180 $30 $150 $35 Group of answer choices $20 $35 $30
The accompanying graph depicts the Marginal Cost (MC), Average Total Cost (ATC), and Marginal Revenue (MR) curves for a perfectly (or purely) competitive firm. Move point A to identify the profit maximizing price and quantity for this firm. Price and Cost 20 19 18 17 16 DEHBEFOON OSION-O 15 14 13- 12 11 10 8 6 4 MR=D A Perfectly Competitive Firm A MC ATC 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity
You own a firm in a perfectly competitive industry producing and selling gold recklaces. You know your costs (see table below) and the set market price $100. TC TFC TVC MC 150 100 50 50 170 100 70 20 200 100 100 30 250 100 150 50 350 100 250 100 500 100 400 150 700 100 600 200 8. 1000 100 900 300 What is profit at the profit maximizing quantity? O Profit 0 O Profit 500 O Profit 150 O Profit 50
7. You are the manager of a firm that produces products X and Y. You know the following reservation prices: Consumer 1 2 3 Product X 90 70 40 Product Y 60 140 160 a. What are your profits if you charge 40 for product X and 60 for product Y? b. What are your profits if you charge 150 for a bundle containing one unit of product X and one unit of product Y? c. What are your profits if you charge 210 for a bundle containing one unit of X and one unit of Y, but also sell the products individually at a price of 90 for X and 160 for Y?
Firms X and firm Y are maximizing profits. At their respective profit-maximizing price, Firm X's own-price elasticity is -2 and Firm Y's own-price elasticity is -3. Which statement is correct? O The share of markup in the optimal price (Lerner index) for firm X is equal to 50% O Firm X is a price taker O Everything else held constant, if firm Y increases its price it will lead to an increase in its revenue O Firm X's consumers are more price sensitive than firm Y's consumers O Firm Y can charge a higher markup than firm X
Q 0 1 2 3 4 5 $164 O $100 $104 $93 P 65 59 53 47 41 35 Previous TR MR The chart below summarizes the demand curve and total cost function faced by a firm with market power. Profit at the profit maximizing level is. wwww TC 30 33 39 48 60 75 MC Profit Next >
Q TR MR TC MC Profit 60 12 1 54 15 2 48 21 3 42 30 36 42 30 57 The chart above summarizes the demand curve and total cost function faced by a firm with market power. The marginal revenue of the second unit of output is and the marginal cost of the second unit of output is O 48:42 O 96;21 O 42:6 O 48:21 * Previous Next MacBook Air F3 F4 F5 F6 2$ 4 % & 7 8
4:40 PV E Yo LTE ll 87%I The ethanol bubble_Gro... O More Aplia Econ Blog News for Econ Students MONDAY, NOOVEMBER 05, 2007 The Ethanol Bubble? by William Chiu The New York Times reports that in less than one year, ethanol prices have plummeted over 30%. As a result, there is even talk of a government bailout for ethanol producers in case the price of ethanol falls too low! So, why did price spikes in last year's ethanol market give way to falling prices this year? To understand the price fluctuations, we need to know how the short-run behavior of firms in competitive industries (such as ethanol) differs from their long-run behavior. In the textbook model of perfectly competitive industries, an increase in demand causes the equilibrium price of ethanol to increase in the short run-from P1 to P2 in the diagram below. In the short run, higher ethanol prices lead profits for ethanol producers. higher PRICE OF ETHANOL PRICE OF ETHANOL MC ATC PROFIT 02 42 MARKET QUANTITY OF ETHANOL FIRM…
Pls select correct option for both question and explain it in 5-6 sentence
1. Use the following demand schedule to determine total revenue and marginal revenue for each possible level of sales: table below: Product Price $2 2 2 2 2 2 Quantity Demanded 0 I 2 3 Total Revenue Marginal Revenue 4 5 you conclude about the struct or the industry in which firm is des. b. Graph the demand, total-revenue, and marginal-revenue curves for this firm c. Why do the demand and marginal-revenue curves coincide? d. "Marginal revenue is the change in total revenue associated with additional units of output." Explain verbally and graphically, using the data in the table.
9. If market price is $20 and the firm maximizes profit (minimizes loss), how much profit will the firm earn? $ $100 $1,200 580 140 540 120 O $1,200 O$4,800 -$6,000 4 130 150 MC 180 212 240 370 100