Table 22-3Output (Q)Total RevenueTotal Cost0$0$101304026060390704120755150851801102101408240180Refer to Table 22-3. Is it possible for this firm to produce "too much" output (in terms of profitability)?Oa. Yes, any quantity above 5 units is too much output.Ob. Yes, any quantity above 6 units is too much output.Oc. Yes, any quantity above 7 units is too much output.Od. No, it is not possible for this firm to produce too much output.

To determine if the firm can produce "too much" output in terms of profitability, let's analyze the…

Answered: Table 22-3 Output (Q) Total Revenue…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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$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).
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The firm will A-increase its marginal revenue B increased its profits C decrease its marginal revenue D maximize its profits
7
Figure 6.1 MC ATC AVC MR2 MR, 3. 3. 3. 30 40 50 60 Quantity Refer to Figure 6.1. Given MR2, what is total revenue if the firm produces 60 units and the lowest point of the average-total-cost curve is $4? $400 $240 $440 $300 Price
6 FIGURE 8-3 1) A. O 2) B. 3) C. D 4) D. Q C Refer to Figure 8-3. A firm that is producing an output of 1000 units will minimize its costs at point Q-2000 Q-1000 locust line 5) halfway between B and D.
$30 $28 $26 $24 $22 $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 0 5 MC АТС AVC MR = P 10 15 20 25 30 35 40 45 50 55 Output (Q) The firm shown in the diagram above will be making a of in the short run. loss; $150 profit; $100 profit; $200 loss; $140
8. Assume a single firm in a purely competitive industry has the following costs: (1) Total Product 0 1 2 3 4 5 879 6 (2) (3) (4) (5) (6) TVC TC AFC AVC ATC PO P 40 55 75 90 110 135 170 220 290 (7) MC 95 P40.00 P55.00 P95.00 P55.00 115 20.00 37.50 57.50 20.00 130 13.33 30.00 43.33 15.00 150 10.00 27.50 37.50 20.00 175 8.00 27.00 35.00 25.00 210 6.67 28.33 35.00 35.00 260 5.71 31.43 37.14 50.00 330 5.00 36.25 41.25 70.00 8a) At a product price of P52, will this firm produce in the short run? Explain. What will its profit or loss be? 8b) At a product price of P28, will this firm produce in the short run? Explain. What will its profit or loss be? 8c) At a product price of P22, will this firm produce in the short run? Explain. What will its profit or loss be?
3. Suppose each firm's long run average cost curve, for positive levels of output, is given by AC = 0.1 + 0.05y + 5. The marginal cost curve is given by MC = 0.1 + 0.1y. (a) Find the level of output, for which the average cost is minimized. (b) What is the firm's minimum average cost? (c) Suppose you have many identical firms in a long run competitive equilibrium. Demand is p = 13.1 – 0.04Q. What is the market quantity? How many firms are there?
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