How to calculation part C and D ? Suppose that a firm in a market has the following total variable costs(TVC):TotalAverageTotalvariableMarginal TotalMarginal TotalTotal Cost Cost$OutputcostRevenueRevenuecost2$2$$1$ 41131541852227It also has fixed costs of $7. If the market price is $5perunit:(a) Explain four features of the above-market structure.(b) Complete the above table in calculating the total cost, marginal cost, total revenue, marginalrevenue, and average total cost of a competitive firm.(c) Find the above firm's profit-maximizing quantity. Explain your answer with a relevantdiagram.(d) Is the above firm earning a positive economic profit, suffering a loss, or break-even at theprofit-maximizing quantity? Show your calculation with a relevant diagram.(e) Is the above firm operating in a short run or long run situation? Explain your answer.

Given:- TVC(Total variable cost) at various level of output. Fixed cost is 7 and market price is 5.…

Suppose that a firm in a market has the following total variable costs(TVC): Total Average Total variable Marginal Total Marginal Total Total Cost Cost $ Output cost Revenue Revenue cost $ $ $ 1 $ 4 2 11 15 4 18 5 22 6 27 It also has fixed costs of $7. If the market price is $5 per unit: (a) Explain four features of the above-market structure. (b) Complete the above table in calculating the total cost, marginal cost, total revenue, margin revenue, and average total cost of a competitive firm. (c) Find the above firm's profit-maximizing quantity. Explain your answer with a relevant diagram. (d) Is the above firm earning a positive economic profit, suffering a loss, or break-even at the profit-maximizing quantity? Show your calculation with a relevant diagram.

Suppose that a firm in a market has the following total variable costs(TVC): Total Average Total variable Marginal Total Marginal Total Total Cost Cost $ Output cost Revenue Revenue cost $ $ $ 1 $ 4 2 11 15 4 18 5 22 6 27 It also has fixed costs of $7. If the market price is $5 per unit: (a) Explain four features of the above-market structure. (b) Complete the above table in calculating the total cost, marginal cost, total revenue, margin revenue, and average total cost of a competitive firm. (c) Find the above firm's profit-maximizing quantity. Explain your answer with a relevant diagram. (d) Is the above firm earning a positive economic profit, suffering a loss, or break-even at the profit-maximizing quantity? Show your calculation with a relevant diagram.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Financial Statements

Financial statements (or financial reports) are the formal records of the financial activities that are undertaken by a firm. They are convenient instruments used for analyzing a company’s financial position and performance. Financial ratios are created with the help of the numerical values that are derived from the financial statements. They give meaningful information about the financial performance of the company.

Question

How to calculation part C and D ?

Suppose that a firm in a market has the following total variable costs(TVC):
Total
Average
Total
variable
Marginal Total
Marginal Total
Total Cost Cost
$
Output
cost
Revenue
Revenue
cost
2$
2$
$
1
$ 4
11
3
15
4
18
5
22
27
It also has fixed costs of $7. If the market price is $5
per
unit:
(a) Explain four features of the above-market structure.
(b) Complete the above table in calculating the total cost, marginal cost, total revenue, marginal
revenue, and average total cost of a competitive firm.
(c) Find the above firm's profit-maximizing quantity. Explain your answer with a relevant
diagram.
(d) Is the above firm earning a positive economic profit, suffering a loss, or break-even at the
profit-maximizing quantity? Show your calculation with a relevant diagram.
(e) Is the above firm operating in a short run or long run situation? Explain your answer.

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