Question 1 Table 1 below shows Samsung's Company production for washing machine in a week. The total cost (TC) and price level at each different quantity of washing machine they produce shown below. Output (Unit) Marginal Cost (S) (MR) Total Total Cost (S) (TC) Price (S) Marginal Revenue Profit (S) Revenue (S) (TR) (S) (MR) 10 35 20 2 3 40 50 4 70 100
Question 1 Table 1 below shows Samsung's Company production for washing machine in a week. The total cost (TC) and price level at each different quantity of washing machine they produce shown below. Output (Unit) Marginal Cost (S) (MR) Total Total Cost (S) (TC) Price (S) Marginal Revenue Profit (S) Revenue (S) (TR) (S) (MR) 10 35 20 2 3 40 50 4 70 100
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Question 1
Table 1 below shows Samsung's Company production for washing machine in a week. The
total cost (TC) and price level at each different quantity of washing machine they produce
shown below.
Output
(Unit)
Price
(S)
Total
Total
Marginal
Cost ($)
Marginal
Revenue
Profit
Cost (S)
(TC)
Revenue
(S)
(S)
(TR)
(S)
(MR)
(MR)
10
1
35
20
40
50
4
70
5
100
140
Table 1
a. Assume that Samsung's company is in perfect competition market, calculate the
marginal cost (MC) and marginal revenue(MR) and profit at each output level. Show
your calculations. Copy and fill in the table above in a blank paper to show your answer.
b. What is the profit-maximizing quantity, price and the output level for this company?
Why? Justify and explain your answer. Diagram is NOT required.
c. Why firm is inefficient when producing at the 6th unit? Explain your answer.
d. Assume that suppose Samsung's company is price maker in the industry for washing
machine, will their profit maximizing price and output remain the same or not? Justify
your answer with some theoretical evidences. Diagram is NOT required.
e. Explain what is the "perfect first-degree and the second-degree price discrimination".
Suppose a firm can practice price discrimination for their products, what is the best
suggestion for Samsung company to maximise its profit. Why? Draw only ONE
diagram.
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