Happy Go Lucky Electric Company is the only company providing electric service to the city of Go Lucky. Demonstrate the five steps to maximizing profit by moving points A, B, C, and D according to the instructions. Place point A on the marginal cost curve where marginal cost equals marginal revenue. Place point B on the x-axis at the output level associated with point A. Place point C on the average total cost curve at that output level. Place point D on the demand curve at that output level. A В C 10 Marginal cost 8 Average total costs 7 6 4 Demand 3 2 1 Marginal revenue 10 30 10 15 Price and cost ($)

Happy Go Lucky Electric Company is the only company providing electric service to the city of Go Lucky. Demonstrate the five steps to maximizing profit by moving points A, B, C, and D according to the instructions. Place point A on the marginal cost curve where marginal cost equals marginal revenue. Place point B on the x-axis at the output level associated with point A. Place point C on the average total cost curve at that output level. Place point D on the demand curve at that output level. A В C 10 Marginal cost 8 Average total costs 7 6 4 Demand 3 2 1 Marginal revenue 10 30 10 15 Price and cost ($)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume a firm's marginal costs are increasing at its current level of output. If a firm's marginal revenue is less than the marginal cost of producing the last unit of output chosen by the firm, then: Profits can be increased if the firm decreases output. The firm is certainly earning an economic profit but not as much as it could be. Profits can be increased if the firm increases output. The firm's economic profit is necessarily less than zero.
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Based on the information in the table below, determine what quantity this firm should produce to maximize its profit. Quantity Marginal Cost Average Total Cost P=Marginal Revenue Total Cost 0 $ 100 1 $ 200 $ 300 $ 200 $ 300 2 $ 100 $ 200 $ 200 $ 400 3 $ 70 $ 157 $ 200 $ 470 4 $ 100 $ 143 $ 200 $ 570 5 $ 142 $ 142 $ 200 $ 712 6 $ 200 $ 152 $ 200 $ 912 7 $ 270 $ 169 $ 200 $ 1,182 8 $ 318 $ 188 $ 200 $ 1,500 Group of answer choices
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
Price 21 20 19 18 17 16 15 14 13 12 11 10 9 7 6 5 43210 3- ABCD Marginal cost A Average total cost Average variable cost 0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 Quantity Which point or points are included in the firm's supply curve in the short run? None of these points are on the firm's short-run supply curve. B с D
Given the following total-revenue and total-cost functions of a firm: TR = 4Q TC = 0.04Q³ – 0.9Q² + 10Q + 5 determine the level of output at which the firm maximizes its total profit. determine the maximum profit that the firm could earn.show solution , explain thoroughly
Complete the table (fill up the FC, compute for TC, MC, AC, AFC and AVC):
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Whether firms are profit maximisers or are pursuing some alternative objective(s), many set prices, not by referring to marginal cost and marginal revenue, but by adding a profit mark-up to average cost. A firm that is a profit maximiser is likely to adjust its mark-up less frequently than a firm that is a profit satisficer. True False
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PRICE (Dollars per pound) 8. Short-run supply and long-run equilibrium Consider the competitive market for rhodium. Assume that no matter how many firms operate in the Industry, every firm is identical and faces the same marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves plotted in the following graph. COSTS (Dollars per pound) 30,90 100 90 80 70 60 50 40 ATC 30 20 AVC 10 MC 0 0 + 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of pounds) The following graph plots the market demand curve for rhodium. Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 20 firms. Finally, use the green points (triangle symbol) to plot the…