Suppose a firm producing coffee provides you with the following information: Price = R100 Quantity = 150 units of coffee Cost of production = R9 500 7.3.1. Calculate the total revenue of the firm. (1) 7.3.2. Is the firm currently making a profit or a loss? Explain. (2)
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Suppose a firm producing coffee provides you with the following information:
Price = R100
Quantity = 150 units of coffee
Cost of production = R9 500
7.3.1. Calculate the total revenue of the firm. (1)
7.3.2. Is the firm currently making a
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- Questión 8 óf 20 The graph presents the costs and revenue for a purely competitive firm, where the market price is equal to $600 per unit of output. This firm has a fixed cost equal to $3,600. Use this information to determine the profit-maximizing output Cost and revenue $2,400 2,200 Marginal cost 2,000 and profit for this firm. 1,800 What is the profit-maximizing output of this purely Average total cost 1,600 competitive firm? Round your answer to the nearest 1,400 whole number. 1,200 1,000 Average variable cost 800 profit-maximizing output : units of output 600 Marginal revenue 400 200 What is the maximum level of profits for this purely 0 1 3 4 6. 8. 9 10 11 12 13 14 competitive firm? Round your answer to the nearest positive Units of output or negative integer. maximum level of profits = $Lisa’s Lawn Company (LLC) is a lawn-mowing business in a perfectly competitive market for lawn-mowing services. The following table sets out Lisa’s costs. Quantity (Lawns per hour Total Cost (dollars per lawn) 0 $30 1 40 2 55 3 75 4 100 5 130 6 165 If the market price is $30 per lawn, how many lawns per hour does Lisa’s LLC mow? If the market price is $30 per lawn, what is Lisa’s profit in the short run? If the market price falls to $20 per lawn, how many lawns per hour does Lisa’s LLC mow?The publisher of a magazine gives his staff the following information: Current price Current sales Current revenue Current total costs $2.00 per issue 150,000 copies per month $300,000 per month $450,000 per month He tells the staff, "Our costs are currently $150,000 more than our revenues each month. I propose to eliminate this problem by raising the price of the magazine to $3.00 per issue. This will result in our revenue being exactly equal to our cost." Refer to the table above, which of the following statements is correct? The publisher's analysis is correct only if the demand is elastic. The publisher's analysis is correct only if the demand is perfectly elastic. The publisher's analysis is correct only if the demand is unit elastic. The publisher's analysis is correct only if the demand is perfectly inelastic.
- Assume a firm is producing at a quantity where marginal cost is higher than marginal revenue. Which of the following is true? 1) To maximize profit. the firm should produce a lower quantity. 2) To maximize profit, the firm should produce a higher quantity. 3) The firm is currently maximizing profit. 4) To maximize profit, the firm should double production.Suppose Rina runs a small business that manufactures frying pans. Assume that the market for frying pans is a competitive market, and the market price is $20 per frying pan. The following graph shows Rina's total cost curve. On the graph below, use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for the first seven frying pans that Rina produces, including zero frying pans. TOTAL COST AND REVENUE (Dollars) 200 175 150 125 100 75 50 25 0 -25 □ 0 1 U 2 ■ U 3 4 5 QUANTITY (Frying pans) n 6 Total Cost 7 8 Total Revenue Profit ?Suppose a firm is able to sell their product for a price of $10. You have the following information on the firm's output and cost Output 500 $70 $100 Implicit Costs Explicit Costs Instructions: Enter amounts as a whole number. If the firm is earning a loss indicate with a negative sign (-). What is the firm's economic profit? $
- Suppose Jake runs a small business that manufactures frying pans. Assume that the market for frying pans is a competitive market, and the market price is $20 per frying pan. The following graph shows Jake's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for frying pans quantities zero through seven (inclusive) that Jake produces. 200 175 Total Revenue 150 Total Cost 125 Profit 100 75 50 25 -25 1 2 6 8 QUANTITY (Frying pans) Calculate Jake's marginal revenue and marginal cost for the first seven frying pans he produces, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity. (? 40 35 Marginal Revenue 30 25 Marginal Cost 20 15 1 2 3 4 5 6. QUANTITY (Frying pans) Jake's profit is maximized when he produces frying pans. When he does this, the marginal cost of the last frying pan he…The following graph plots daily cost curves for a firm operating in the competitive market for fitness trackers. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. PRICE(Dollars pertracker) 100 90 70 60 50 40 20 10 0 0 MO ATC AVC 50 60 70 80 10 20 30 40 QUANTITY (Thousands of trackers per day) 90 100 Profit or Loss In the short run, given a market price equal to $45 per tracker, the firm should produce a daily quantity of trackers. On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $45 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run thousand per day for the firm.Questión 7 óf 20 The graph presents the costs and revenue for a purely competitive firm, where the market price is equal to $300 per unit of output. This firm has a fixed cost equal to $3,600. Use this information to determine the profit-maximizing output Cost and revenue $2,400 2,200 Marginal cost 2,000 and profit for this firm. 1,800 What is the profit-maximizing output of this purely Average total cost 1,600 competitive firm? Round your answer to the nearest 1,400 whole number. 1,200 1,000 800 600 Average variable cost profit-maximizing output: units of output 400 Enter numeric value 200 Marginal revenue What is the maximum level of profits for this purely 1 4 5 6 7 8 9 10 11 12 13 14 15 competitive firm? Round your answer to the nearest positive Unit of output or negative whole number. maximum level of profits: $ 3. 2.
- Problem Set #2 (Note: On this problem, use EXCEL to generate numbers. Please replace the below table with your answers ON THIS SHEET. Similarly, in the rest of the assignment use EXCEL and insert figures and tables from EXCEL onto this sheet. 1. Consider the total profit function π = TR (31-Q)Q = TC (20+Q+2Q²) Create a table that shows Total Revenue, Total Cost and Total Profit, (in your table, let quantity run from 0 to 10 in increments of 1.) Indicate in where total profits are maximized your tableRefer to the accompanying figure. If the market for doughnuts is perfectly competitive, then assuming this firm can earn enough revenue to cover its variable cost, it should produce: Price (S/doughnut) 0.35 p 0.30 0.25 0.20 0.15 0.10 0.05 0 0 10 20 30 40 50 60 Marginal Cost 70 80 90 Quantity (doughnuts/day) Average Total Cost 50 doughnuts per day. the quantity of doughnuts at which average total cost is minimized. the quantity of doughnuts at which average total cost equals the market price. the quantity of doughnuts at which marginal cost equals the market price.The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a purely competitive firm that produces novelty ear buds. Assume the market for novelty ear buds is a competitive market and that the price of ear buds is $6.00 per pair. Buddies Production Costs MC ($) Quantity of Ear Buds 5 10 15 20 25 30 35 40 2.00 2.45 3.55 4.00 5.50 5.98 8.52 pairs ATC ($) 2.00 2.00 2.15 2.50 2.80 3.25 3.64 4.25 Check my work Instructions: In part a, enter your answer as the closest given whole number. In parts b-d, round your answers to two decimal places. a. If Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? b. At the profit-maximizing quantity, what is the total cost of producing ear buds? c. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what will Buddies profit or loss be per week? d. Now assume the market price is $5.50 per pair, and Buddies produces the…