onsider the table below and assume the market price is $35 per unit. Total product Total fixed cost Total Variable cost 0 150 0 1 150 50 2 150 75 3 150 112.4 4 150 150 5 150 200 6 150 270 7 150 360 8 150 475 9 150 620 10 150 800 Now assume there are 600 identical firms in this industry, that is, there are 600 firms, each of which has the same cost data as the single firm discussed above. Suppose, too, that the demand curve for this industry is as follows: Price Quantity demanded $20 6,800 30 5,975 45 5,500 60 5,125 75 4,500 95 4,200 120 3,600 150 2,400 In equilibrium each firm will realize: Multiple Choice an economic profit of $155. a loss of $45. an economic profit of $35. a loss of $135.
onsider the table below and assume the market price is $35 per unit. Total product Total fixed cost Total Variable cost 0 150 0 1 150 50 2 150 75 3 150 112.4 4 150 150 5 150 200 6 150 270 7 150 360 8 150 475 9 150 620 10 150 800 Now assume there are 600 identical firms in this industry, that is, there are 600 firms, each of which has the same cost data as the single firm discussed above. Suppose, too, that the demand curve for this industry is as follows: Price Quantity demanded $20 6,800 30 5,975 45 5,500 60 5,125 75 4,500 95 4,200 120 3,600 150 2,400 In equilibrium each firm will realize: Multiple Choice an economic profit of $155. a loss of $45. an economic profit of $35. a loss of $135.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
onsider the table below and assume the market price is $35 per unit.
| Total product |
Total fixed cost |
Total Variable cost |
| 0 | 150 | 0 |
| 1 | 150 | 50 |
| 2 | 150 | 75 |
| 3 | 150 | 112.4 |
| 4 | 150 | 150 |
| 5 | 150 | 200 |
| 6 | 150 | 270 |
| 7 | 150 | 360 |
| 8 | 150 | 475 |
| 9 | 150 | 620 |
| 10 | 150 | 800 |
Now assume there are 600 identical firms in this industry, that is, there are 600 firms, each of which has the same cost data as the single firm discussed above. Suppose, too, that the demand curve for this industry is as follows:
| Price | Quantity demanded |
| $20 | 6,800 |
| 30 | 5,975 |
| 45 | 5,500 |
| 60 | 5,125 |
| 75 | 4,500 |
| 95 | 4,200 |
| 120 | 3,600 |
| 150 | 2,400 |
In equilibrium each firm will realize:
Multiple Choice
-
an economic profit of $155.
-
a loss of $45.
-
an economic profit of $35.
-
a loss of $135.
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