Quantity Price 0 1 2 3 4 5 6 7 8 co 9 10 $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 Marginal Cost $45 $40 $35 $30 $35 $40 $45 $60 $100 $180 Average Total Cost $80 $64 $52 $44 $40 $40 $52 $64 $80 $100
Q: Price and cost (dollars) 50 40 30 20 ATC 10 MC MR 10 20 30 40 50 Quantity (thousands of households)…
A: We are going to use monopoly pricing concept to answer this question.
Q: 6. Elasticity and total revenue I The following graph shows the daily demand curve for bippitybops…
A: The demand curve depicts the inverse relationship between price and quantity demanded, keeping other…
Q: Quantity Demanded Total Cost Marginal Cost Price Total Revenue Marginal Output Produced Revenue…
A: The total production process of a firm is an amalgamation of various costs, the optimum quantity…
Q: Quantity Total Cost Marginal Cost Total Revenue Marginal Revenue Profit (Dollars) (Dollars)…
A: Marginal cost = change in total cost / change in quality MC (at Q = x) = TCx – TCx-1 / Qx – Qx-1…
Q: Barrels of Average Oil Marginal Marginal Total Produced Revenue Cost Costs $ 30.00 $ 50.00 $ 4.00 $…
A: Fixed cost is independent of output produced whereas variable cost varies with the level of…
Q: (Figure: Profit Margin 3) JoJo's company data is in the graph below. JoJo would earn a positive…
A: The firm can obtain profit at the point of production where the price is greater than the average…
Q: sing the cost information above, complete the table below related to profit maximization.…
A: A perfectly competitive firm faces the horizontal demand curve because the perfectly competitive…
Q: Refer to the figure and table to answer three questions. Price or Cort (dollars per bushel) 1 18 16…
A: Microeconomics refers to the branch of economics that deals with/studies the behavior of individuals…
Q: uantity Price ($) Total Revenue ($) Marginal Revenue ($) Total Cost ($) Marginal Cost ($)…
A: A firm maximises its total profit in a very noncompetitive market by equalisation monetary value to…
Q: Question 11 Price & $40 $30 $20 $10 0 $2.500 O $500 O $2,250 150 Quantity Referring to the graph…
A: Monopoly is a market structure where there is a single seller and a large number of buyers. Thus, a…
Q: 4) Assuming a market price of $4, fill in the columns in the following table. What is the…
A: Economics refers to the study of scarcity and its implications for the use of resources, production…
Q: You are an owner of a local Toyota dealership. Your dealership earned record profits of 13 million.…
A: Given: N=3EM=-1.5MC=$12000 Here N is the total number of dealers in the market EM is the market…
Q: Firm A profit max Firm B cannot sell any cannot sell any cannot sell any cannot sell any profit max…
A: Maximum profit is only possible if MR = MC. The firm has the ability to enhance production in the…
Q: Plotted through point E are two demand curves; one is relatively elastic, and the other is…
A: The kinked demand curve represents the independence of firms in an oligopoly market. The kink of the…
Q: What method is used to determine optimal quantity? (A) Pick a number out of a hat B Marginal…
A: Optimal quantity refers to the amount of goods or services that maximizes the net benefit or utility…
Q: Quantity of Gift Boxes TC ($) ATC ($) 55.00 11.00 10 57.50 5.75 15 4.17 20 72.50 25 92.50 3.70 30…
A: TC (at Q=15) = ATC15 * 15 = 4.17*15 = $62.55 ATC(at Q=20)=TC20/Q20 = 72.50/20 = $3.63 MC(at 10th…
Q: Table#1: Varieties of Costs Output (Q) (Instructional Fixed Variable Total Costs Average Fixed Cost…
A: Below is the filled table:
Q: the total revenue equals profit. The following table shows the town's demand schedule for water.…
A: The monopoly is a market condition in which there will be only a single seller present. The only…
Q: Refer to Table 6. At what quantity does John's Vineyard maximize profits? Select one: O a. 6 O b. 7…
A: Profit is the earnings or financial benefit of an individual or firm in doing business. The firm…
Q: Quantity 0 1 2 3 4 Total Cost $10.00 15.00 17.50 5 0 $15.00 8.75 7.50 7.50 800 875 7 67 50 964 B…
A: In perfect competition, there are many firms producing identical goods.
Q: (1.) Johnny Rockabilly has just finished recording his latest CD. His record companys marketing…
A: We have given demand schedule for Cd's
Q: Fixed Variable Total Marginal Output Cost Cost Cost AVC ATC Cost 1 $400 2 $700 3 $918 4 $1200 5…
A: Average variable cost is the variable cost incurred per unit of output produced. Average total cost…
Q: Complete the following table to determine whether Tim is correct. Price Quantity Demanded Total…
A: Demand curve shows the negative relationship between price and quantity demanded. It is downward…
Q: a. Complete the following table: Instructions: Enter your responses as a whole number. If you are…
A: In a monopoly market structure, There exists a single seller. The monopolist will produce where MR…
Q: 6. Problems and Applications Q6 You live in a town with 300 adults and 200 children, and you are…
A: Price discrimination refers to the practice of charging different prices to different customers for…
Q: EXHIBIT #1 Price Quantity TC $10 40 $374 $10 41 $376 $10 42 $360 $10 43 $365 $10 44 $390 $10 45 $400…
A: Answer; Q2) Option (b) 43 units is correct
Q: Consider a town in which only two residents, Raphael and Susan, own wells that produce water safe…
A: We are authorized to answer one question at a time, since you have not mentioned which one you are…
Q: Suppose Nick and Rosa form a cartel and behave as a monopolist. The profit-maximizing price is $ |…
A: Monopoly refers to the form of market in which there is one single seller, and selling a unique…
Q: Price (dollars) ying graph shows the short-run demand and cost situation for a price searcher in a…
A: Profit maximisation is a process that businesses go through to make sure the best levels of output…
Q: Quantity of Resort Units Marginal Capacity Cost Marginal Operating Cost Peak Marginal Revenue…
A: Given: Quantity of Resort Units Marginal Capacity Cost Marginal Operating Cost Peak Marginal…
Q: Exhibit 8-3 (1) Price $12 $12 $12 $12 $12 $12 $12 $12 Ⓒa. 41 units b. 42 units Refer to Exhibit 8-3.…
A: The given table shows that price is constant at all levels of output. This implies that sellers can…
Q: age verage Average Product Fixed Cost Variable Cost Cost Fixed Cost Variable Total (Q) (TFC) Cost…
A: A market is completely competitive assuming that each firm in the market is a value taker. A firm is…
Q: 1) Complete the table. Price Quantity Total Marginal Fixed Demanded Revenue Revenue Cost 18 600 17…
A: Total Revenue is the product of price and quantity demanded. TR=PxQ Marginal Revenue is the…
Q: The figure to the left shows the isoprofit curves and demand curve for Cheerios breakfast cereal.…
A: a) A rival company producing a similar brand slashes its prices.b) The cost of producing Apple…
Q: Price and cost (dollars) 50 40 .ATC 10 MC MR 10 Quantity (thousands of households) 20 30 40 50 The…
A: A sole provide of cable television and having downward sloping ATC meaning that it is natural…
Q: a. To maximize its profits, the firm should produce [ and charge a price of $ b. What area…
A: A firm produces at the intersection of MR and MC curves to maximize the profit. Hence,…
Q: Table #1: The following table presents cost and revenue information for Soper's Port Vineyard.…
A: Formula of calculating average revenue AR = TR ÷ Q
Q: Table 15-4 Price per Dose $80 77645648 40 32 72 Quantity Demanded (dose) 0 24 1 2 3 4 5 6 7 16 8…
A: Profit refers to an excess income that a company earns, over the revenue from the sale of its…
Q: Price Quantity (tickets per show) Total cost Big Top is the only circus in the nation. The table…
A: Introduction We have given a data of price of tickets and quantity of tickets for the big top…
Q: Refer to Table 6. What is John's Vineyard's economic profit at its profit-maximizing output level?…
A: Marginal cost is the addition to the total cost of producing an additional unit of output. Marginal…
Q: When the local electricity company charges a price of $20 per kilowatt they sell 1,000 units. If…
A: Marginal revenue refers to the change in the total revenue due to a change in the output. It is…
Q: Fixed Cost Average Fixed Cost Total Variable Cost Average Variable Cost Total Cost…
A: Marginal cost measures the additional cost incurred in order to produce an additional unit of…
Q: 130 Refer to the data for a nondiscriminating monopolist. At its profit-maximizing output, this…
A: We know that the monopolist profit maximization output condition is marginal revenue is equal to…
Q: Price Marginal Cost 3 Price Marginal Revenue Quantity (a) Find the point (A, B, C, D, or E) that…
A: Here, the given graph shows the imperfectly competitive market as the marginal revenue curve differs…
Step by step
Solved in 3 steps
- Consider a town in which only two residents, Hubert and Kate, own wells that produce water safe for drinking. Hubert and Kate can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water. Price Quantity Demanded Total Revenue (Dollars per gallon) (Gallons of water) (Dollars) 6.00 0 0 5.50 45 $247.50 5.00 90 $450.00 4.50 135 $607.50 4.00 180 $720.00 3.50 225 $787.50 3.00 270 $810.00 2.50 315 $787.50 2.00 360 $720.00 1.50 405 $607.50 1.00 450 $450.00 0.50 495 $247.50 0 540 0 Suppose Hubert and Kate form a cartel and behave as a monopolist. The profit-maximizing price is____per gallon, and the total output is_____gallons. As part of their cartel agreement, Hubert and Kate agree to split production equally. Therefore, Hubert's profit is _____, and Kate's profit is______. Suppose that Hubert and Kate have been successfully…Figure 12-6 Price (dollars per pound) Market 3 price 2 0 10 20 30 MC ATC D=MR 40 Quantity (thousands of pounds) Figure 12-6 shows the demand, marginal cost (MC) and average total cost (ATC) curves for Jason's House of Apples. Refer to Figure 12-6. Jason is currently producing 20 thousand pounds of apples. To maximize his profit Jason should keep production at 20 thousand pounds. O increase production to the output rate indicated by point e. increase production to the output rate indicated by point d. O decrease production to the output rate indicated by point a.QUESTION 10 PRODUCT product X product Y product Z Ob) 153 O c) 1.2 O d) 150 O e) 200 QUESTION 11 O (c) 30% O (d) 25% Ⓒ (e) 20% price: $2.00 quantity: 2,000 price: $1.00 1,000 quantity: price: quantity: PRODUCT product X QUESTION 12 1988 product Y product Z QUESTION 13 $5.00 1,000 $4.00 2,500 $1.00 1,500 10. Given the data in the above table, what is the price index for 1988, using 1988 as the base year and using the 1988 consumption pattern (market basket)? O a) 100 $4.00 1,000 quantity: 1989 price: $2.00 quantity: 2,000 1988 price: $1.00 1,000 price: $5.00 quantity: 1,000 YEAR 1990 $6.00 2,000 $1.00 2,500 $2.00 1,000 1989 $4.00 2,500 $1.00 1,500 $4.00 1,000 1991 $8.00 1,500 $1.00 3,000 11. What is the rate of inflation between 1988 and 1989? (Use 1988 based price indices and 1988 market basket) O (a) 50% O (b) 33% $3.00 1,000 YEAR 1990 $6.00 2,000 $1.00 2,500 $2.00 1,000 1991 $8.00 1,500 $1.00 3,000 $3.00 1,000 12. Which of the following is NOT a problem in using economic statistics?…
- PRICE (Dollars per room) 500 450 400 350 300 250 200 150 100 50 0 Demand 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Hotel rooms) Graph Input Tool Market for Lakes's Hotel Rooms Price (Dollars per room) Quantity Demanded (Hotel rooms per night) Demand Factors Average Income (Thousands of dollars) Airfare from DSM to ACY (Dollars per roundtrip) Room Rate at Mountaineer (Dollars per night) 350 150 50 100 200 ? For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Lakes is charging $350 per room per night. If average household income increases by 10%, from $50,000 to $55,000 per year, the quantity of rooms demanded at the Lakes rooms per night to rooms per night. Therefore, the income elasticity of demand is from , meaning that hotel rooms at the Lakes are If the price of an airline ticket from DSM to ACY were to increase by 50%, from $100 to $150 roundtrip, while all other demand factors remain at their initial values,…Price ($) 1000 500 300 0 300 500 Supply Demand What is the total cost of producing 300 iPads? 1000 Quantity# of Hamburgers Variable Costs Fixed Costs Total Costs Average Total Cost Average Variable Cost Marginal Cost 1,000 $500 $5,000 $5,500 $1 xxxx 2,500 $1,000 $5,000 $6,000 4,000 $1,400 $5,000 $6,400 9,000 $2,400 $5,000 $7,400 13,000 $3,400 $5,000 $8,400 20,000 $10,000 $5,000 $15,000 45,000 $31,250 $5,000 $36,250
- PRICE (Dollars per room) 500 450 400 350 300 250 200 150 100 50 0 0 Demand + 50 100 150 200 250 300 350 400 450 500 QUANTITY (Hotel rooms) Graph Input Tool Market for Oceans's Hotel Rooms Price (Dollars per room) Quantity Demanded (Hotel rooms per night) Demand Factors Average Income (Thousands of dollars) Airfare from DSM to ACY (Dollars per roundtrip) Room Rate at Meadows (Dollars per night) 300 200 40 200 rooms per night to ,hotel rooms at the Oceans and hotel rooms at the Meadows are 200 For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Oceans is charging $300 per room per night. If average household income increases by 50%, from $40,000 to $60,000 per year, the quantity of rooms demanded at the Oceans rooms per night to rooms per night. Therefore, the income elasticity of demand is Oceans are ? from meaning that hotel rooms at the If the price of a room at the Meadows were to decrease by 20%, from $200 to $160,…$15 $14 $13 $12 $11 $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 0 500 750 1,000 -MR=D ATC AVC 1,250 Referring to the graph above, the profit-maximizing price is QuantityQuestion Happy Go Lucky Electric Company is the only company providing electric service to the city of Go Lucky. Demonstrate the five steps to maximizing profit by moving points A, B, C, and D according to the instructions. Place point A on the marginal cost curve where marginal cost equals marginal revenue. Place point B on the x-axis at the output level associated with point A. Place point C on the average total cost curve at that output level. Place point D on the demand curve at that output level. А В с D 10 9. Marginal cost 8 Average total costs 7 Demand 3 2 1 Marginal revenue 10 15 20 25 30 35 40 45 50 LO LO Price and cost ($)
- Quantity Price ($) Total Revenue ($) Marginal Revenue ($) Total Cost ($) Marginal Cost ($) Average Cost($) 2 24 48 23 35 2.5 17.5 4 23 92 21 45 5 11.25 6 22 132 19 60 7.5 10 8 21 168 17 77 8.5 9.63 10 20 200 15 100 11.5 10 12 19 228 13 126 13 10.5 14 18 252 11 165 19.5 11.79 16 17 272 9 210 22.5 13.13 18 16 288 7 260 25 14.44 20 15 300 5 320 30 16 The table above is for a monopolistic competitive firm. What price will the firm charge? Question 19 options: $13 $15 $19 $24|Price Demanded Revenue Revenue Marginal Cost Cost $24 1000 $24,000 ** $15,000 ** ** ** $22 1250 $27,500 $14 $17,000 $8 $20 1500 $10 $19,500 $10 $18 1750 $31,500 Y $23,000 $14 $16 2000 $32,000 $2 $27,000 Z (a) Calculate total revenue at X. (b) Calculate marginal revenue at Y. (c) Calculate marginal cost at Z. (d) Find the profit maximizing price. (e) Find the profit maximizing quantity. (f) Find the profit the firm will earn.Quantity Total Revenue Marginal Cost $0 1 $10 $2 2 $20 $4 3 $30 $6 4 $40 $8 5 $50 $12 $60 $14 7 $70 $16 Refer to the above table for a firm's production per day. Suppose the firm has fixed costs of $10 and output price is also $10. The firm will maximize profits by producing |-10 units of output. At the profit-maximizing output level, the firm's total revenue will be $-2 its total costs will be $4 and its profit will be $8 6,