If a single firm with demand Q = 100-2P (Q= quantity, P = Price), reduces its constant marginal costs from £8 to £4 then Consumer Surplus (CS) and Producer Surplus (PS) after the reduction in marginal costs will be... Question 12 Answer a. CS=1058 PS = 529 b. CS = 2116 PS 1058 c. CS = 529 PS = 1058 d. CS = 1000 PS = 500 e. CS = 500 PS = 1000

If a single firm with demand Q = 100-2P (Q= quantity, P = Price), reduces its constant marginal costs from £8 to £4 then Consumer Surplus (CS) and Producer Surplus (PS) after the reduction in marginal costs will be... Question 12 Answer a. CS=1058 PS = 529 b. CS = 2116 PS 1058 c. CS = 529 PS = 1058 d. CS = 1000 PS = 500 e. CS = 500 PS = 1000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________. Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.
Problem two Consider the total cost and total revenue given in the following table: Total Total Quantity cost Revenue 0 1 2 3 4 5 6 7 8 9 10 11 13 19 27 37 0 8 16 24 32 40 48 56 a) Calculate the profit for each quantity. How much should the firm produce to maximize profit? b) Calculate the marginal revenue and marginal cost for each quantity. Graph them. c) Can you tell whether this firm is in a competitive industry? If so, can you tell whether the industry is in a long-run equilibrium?
The marginal cost to produce one bottle of developer is $5. There is no fixed cost. Note that this is a market demand, not a firm's individual demand schedule. 1)Calculate total revenue, total cost, marginal revenue and total profit. Quantity Demanded : 0, 10, 20, 30, 40, 50, 60, 70, 80 Price: 40, 35, 30, 25, 20, 15, 10, 5, 0 2) If the market for developer is perfectly competitive, what quantity will be produced? What price will be charged? What will the firm’s profit be? Write a sentence explaining how you determined each of those three answers.
A competitive firm has a cost function C=2q³-12q²+20q+100. The optimal output at price of 92 is a. b. C. d. e. a. b. C. d. e. A competitive firm has a cost function C=2q³-12q2+20q+100. At price 92, the optimal profit is a. b. C. d. e. 10. 8. 6. A competitive firm has a cost function C=2q³-12q²+20q+100. At price 92, the optimal producer surplus is a. b. 4. None of the above. C. d. e. -220. 634. 529. 332. None of the above. -120. 734. 629. A competitive firm has a cost function C-2q³-12q²+20q+100. The firm's supply curve is given by 432. None of the above. P=2q³-12q²+20q+100 for q20. P=6q²-24q+20 for q20. P-6q²-24q+20 for q23. 2q³-12q²+20q+100 for q≥12. None of the above.
Determine whether the following statements are TRUE or FALSE. Explain your answer using graphs or examples. a. If a firm has zero elasticity substitution between inputs, then the short-run cost of producing a level of output equals the long-run cost. b. For firms in a competitive market, producing a maximizing profit quantity always means minimizing cost, while the reverse is not true.
10. Given a qmes = 100 and a minimum long-run average total cost of $2. (a) If the quantity demanded at p = $2 is 10, 000. How many firms can enter the market and at least break-even? (b) If technology gets better and reduces the minimum long-run average total cost of $1 and increases qmes = 9,000. At p = $1 the quantity demanded is 14, 000. How many firms || can enter the market and at least break-even? What market structure will describe this market better, perfect competition or monopoly?
sub= 24 help
Marginal cost= 2x+3 Average variable cost= x+3 Variable cost=x^2 + 3x x is the daily output. Product's price is 13 dollars. Part a) Calculate the level of output that will be produced. Part b) Calculate the producer surplus of the firm. Part c) The fixed costs are 5 dollars. In the short run, is the firm making a 0 economic profit, a positive profit, or a negative profit? Explain why.
can you draw a diagram of long run industry supply curve, with price on the y-axis and quantity on the x-axis, and a downward-sloping curve showing the relationship between price and quantity supplied? then also draw another diagram of long run industry supply curve, with price on the y-axis and quantity on the x-axis, and a downward-sloping curve showing the original relationship between price and quantity supplied, and a second, upward-sloping curve showing the new relationship between price and quantity supplied after the increase in the price of oil?