Output (Q) Total Total Price Revenue Cost $20.00 $2.50 $15.00 $5.00 $10.00 $7.50 - 4 $5.00 $10.00 The table above shows demand and cost information for a firm that has market power and can set its price. If the firm can only charge one price to all its customers (it cannot price discriminate), it's profit maximizing Output (Q) is: Select one: O a. 3 O b. 4 O C. O d. 2
Output (Q) Total Total Price Revenue Cost $20.00 $2.50 $15.00 $5.00 $10.00 $7.50 - 4 $5.00 $10.00 The table above shows demand and cost information for a firm that has market power and can set its price. If the firm can only charge one price to all its customers (it cannot price discriminate), it's profit maximizing Output (Q) is: Select one: O a. 3 O b. 4 O C. O d. 2
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 32CTQ: How does fixed cost affect marginal cost? Why is this relationship important?
Related questions
Question
Q38 and Q39
Transcribed Image Text:Output
(0)
Total
Total
Price
Revenue
Cost
$20.00
$2.50
2.
$15.00
$5.00
3.
$10.00
$7.50
4.
$5.00
$10.00
The table above shows demand and cost information for a firm that has market power and can set its price. If the firm
can only charge one price to all its customers (it cannot price discriminate), it's profit maximizing Output (Q) is:
Select one:
Oa.
3.
O b. 4
O c.
1
O d. 2
Transcribed Image Text:Average
Total
Total
Total
Average
Variable
Total
Variable
Marginal
Output
(Q)
Fixed
Cost
Cost
Cost
Cost
Cost
Cost
150
$500
$400
$900
$2.67
200
$500
$800
$1,300
$6.50
The table above shows costs for
firm. When Q = 200, Av
Variable Cost (AVC) is equal to:
Select one:
O a. $2.50
O b. $4.00
O c. $6.50
O d. $800
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