Ś 50 48 46 44 42 40 38 36 34 32 30 28 26 26 24 22 20 18 16 AVC ATC MC 14 12 10 8 6 4 2 0 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 What is the profit at this level? $64 9.5 10 10.5 At the competitive market price of P=40, what is the firm's current optimal output level? 8 If the price drops to P=20, what would be the current optimal output level? q If all firms in the industry had similar cost structures, what would be the long-run price in the market? $

Ś 50 48 46 44 42 40 38 36 34 32 30 28 26 26 24 22 20 18 16 AVC ATC MC 14 12 10 8 6 4 2 0 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 What is the profit at this level? $64 9.5 10 10.5 At the competitive market price of P=40, what is the firm's current optimal output level? 8 If the price drops to P=20, what would be the current optimal output level? q If all firms in the industry had similar cost structures, what would be the long-run price in the market? $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that the steel firm’s costs are shown below: Complete the table and determine the optimal output to be Price of steel is P175 per unit. Output (Q) TFC TVC TC MC TR MR Profit/Loss 0 500 0 1 500 50 2 500 90 3 500 140 4 500 200 5 500 270 6 500 350 7 500 450 8 500 600 9 500 800
da 6 A market is characterised by an inverse demand curve p = 8 - 2O where Q is total quantity. Two firms, A and B, are competing à la Cournot and ta non TCA(qA) = 29A and TCB(qB) = 9 %3D %3D data Total profits n (Le. the sum of profit for the two firms) are equal to: ggio max. ontrassegna O (a) N = nda O (b) = 16 O (c)N = 4 O (d) = 9
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QUESTION 12 a firm operating in a purely competitive market $ 40 36 32 28 24 20 16 12 8 4 0 K 0 4 8 12 16 12. At P-$28, this firm's total profit or loss will be a)-$210 b) 50 c) 57 Od) $264 e) $575 20 24 MC 28 ATC AVC 32 Q
q 0 1 2 3 4 5 6 TFC $5 5 5 5 5 5 5 TVC $0 3 Marginal revenue is 5 9 16 25 36 MC $3 2 4 7 9 11 P= MR $5 5 5 5 5 5 5 TR $0 5 10 15 20 25 30 TC $5 8 10 14 21 30 41 Profit $-5 - 3 0 1 - 1 -5 - 11 A profit-maximizing firm should produce a quantity of 3 units. (Enter your response as a whole number.) marginal cost for the first units of output. If the company decides to produce more than units, the marginal cost would exceed marginal revenue and profit would
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1. If a product sells at a price of $16 in a purely competitive market and faces the marginal cost data shown below, what is the profit maximizing/loss minimizing level of output? Output 0 1 2 3 4 5 Marginal Cost $10 9 13 17 21
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Rubidoux Adventures supplies professional guides for climbs up Mt. Rubidoux. The company has two guides, Rocky and Cliff. Because Mt. Rubidoux is a pretty easy climb, the company has only two customers, Ken and Lucy. The table below shows the guides' marginal costs for each climb as well as the customers' MWTP for guided climbs. Use this table to answer the questions that follow. Assume that only whole climbs are available. MCRocky (S/climb) Climbs MCClff MWTPKen MWTPLucy (S/climb) (S/climb) (S/climb) 1 4 1 24 22 2 6. 23 21 3 7 4. 21 18 4 11 7 19 16 13 9 17 11 16 12 14 8 7 19 14 11 6 21 16 9 3 What is Ken's reservation price? O a. 22 Ob. 23 OC 24 O d. 21
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May i know the correct answers from 1-3
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