QUESTION 15 The data in the below table shows the production and costs of certain firm, use the table to answer the following questions Q TR MR TC MC AC Profit/loss 1 27 28 24 33 3. 21 40 4 18 49 5. 15 75 12 114 1. Based on the above table, at which level of output the firm gets maximum revenue? 2. Based on the above table, what is the value of profit maximization output (Q*) and Profit maximization price (P*)? 3. Based on the above table, Does the firm get profit/loss if the firm produces Q* units? 4. Based on the above table, what is the amount of profit or loss at Q*? 5. Based on the above table, at which level of output the firm will earn zero or normal profit?

QUESTION 15 The data in the below table shows the production and costs of certain firm, use the table to answer the following questions Q TR MR TC MC AC Profit/loss 1 27 28 24 33 3. 21 40 4 18 49 5. 15 75 12 114 1. Based on the above table, at which level of output the firm gets maximum revenue? 2. Based on the above table, what is the value of profit maximization output (Q) and Profit maximization price (P)? 3. Based on the above table, Does the firm get profit/loss if the firm produces Q* units? 4. Based on the above table, what is the amount of profit or loss at Q*? 5. Based on the above table, at which level of output the firm will earn zero or normal profit?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Bonus Question 4 1 A firm makes three products, in quantities X, Y and Z. It wishes to maximize its profit function: x=8X+16Y+4Z-0.8X2-0.8Y2-2² i) However, in order to satisfy customer orders, it must produce a total of 24 items which are either product X or product Y. Show how many of each of its three products it should produce and find the profit it makes.
Refer to the table below. How much profit would this firm make if it produces 2 units of goods? Q P TR MR TC MC 0 $30 0 - $15 - 1 $30 $30 $30 $25 $10 2 $30 $60 $30 $40 $15 3 $30 $90 $30 $60 $20 4 $30 $120 $30 $85 $25 5 $30 $150 $30 $115 $30 6 $30 $180 $30 $150 $35 Group of answer choices $20 $35 $30
QUESTION 20 Study the table below which represents the cost and price schedules facing a perfectly competitive firm that manufactures bulbs. Use this information to answer the question. Quantity of the product 0 1 2 3 4 Price per unit (R) 10 10 10 10 10 10 c) d) 38022222 Total revenue Total profit (R) -10 -9 -5 -6 Marginal cost (R) . 9 6 8 10 13 Average variable cost (R) 9,00 7,50 7,67 8,25 9,20 This perfectly competitive firm will produce a) 3 bulbs, since losses are minimised. b) 4 bulbs, but it will consider shutting down in the short run. 4 bulbs, since at this production level it earns normal profit. 4 bulbs and will stay in operation.
(Figure 10-3)What is the maximum economic profit this firm depicted in Figure 10-3 will be able to earn? Group of answer choices $600 $200 $400 $0
3. Based on the diagram, answer the following questions. Revenue/cost MC AVC AC 26 AR = MR 23 20 20 Output (1) Total revenue (TR) (i) Total cost (TC) (ii) Profit (iv) Type of profit is earned by this firm? Justify your answer.
Using the graph attached, calculate the firm's profits at the profit maximizing output.
Use the information for a competitive firm in the table below to answer questions 1 through 3. Quantity Total Revenue Total Cost MR MC $0 $ 32 5 45 40 $9 $8/5 54 49 $9 $9 7 63 59 $9 $10 8 72 70 $9 $11 1. At which quantity of output is max Profit? ANSWER: Q= 6units, where MC=MR 2. The maximum profit available to this firm is ANSWER: at Q=6, TR-TC= $5. 3. If the firm finds that its marginal cost is $11, it should increase or decrease production to maximize profit? LO
$30 M ATO 20 AVC 15 75 80 100 Output 1-At which point the firm gets abnormal profit? 2- based on your answer in question one, what is the amount of total revenue? 3- based on your answer in question one, what is the amount of abonormal profit? 4-Find the value of Average Fixed cost at Q= 100 5- Determine the shutdown point? For the toolbar, press ALT+F10 (P) or ALT+FN+F10 (Mac).
Please answer F and show steps for the graph
3. The components of marginal revenue Asim's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Asim initially produced seven trucks, but then decided to increase production to eight trucks. The following graph gives the demand curve faced by Asim's HookNLadder. As the graph shows, in order to sell the additional fire truck, Asim must lower the price from $100,000 to $50,000 per truck. Notice that Asim gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial seven engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial seven engines by selling at $50,000 rather than $100,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $50,000. PRICE (Thousands of dollars per fire engine) 275 250 Asim 225 200 175…
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Use the figure below to answer the following questions. Price and cost (dollars per unit) 100 90 85 80 70 55 40 0 MR₂ MC ATC La MR₁ 100 140 200 220 250 Quantity (units per week) Figure 13.2.3 Refer to Figure 13.2.3. Assume this firm faces demand curve D2. If the firm produces the efficient quantity, it makes zero economic profit. makes an economic profit. will face competition from new firms entering the industry. is in a long-run equilibrium. incurs an economic loss.