The following table shows data for quantity (Q), price (P), fixed cost (FC), and variable cost (VC) for a hypothetical fırm in a perfectly competitive market. Q P FC VC TC MC TR MR P/L $72 $100 $0 1 72 100 64 72 100 84 3 72 100 114 4 72 100 184 5 72 100 270 a) Fill the table for total cost (TC), marginal cost (MC), total revenue (TR), marginal revenue (MR), and profit or loss (P/L). Make sure to show your work for at least one line of Q. b) What is the profit maximizing quantity? Justify your answer. NOTE: this is a FILE UPLOAD question. Work your solution an excel file and upload it, or write down your solution in a piece of paper, take a picture with VOur smartphone and unload the nicture

The following table shows data for quantity (Q), price (P), fixed cost (FC), and variable cost (VC) for a hypothetical fırm in a perfectly competitive market. Q P FC VC TC MC TR MR P/L $72 $100 $0 1 72 100 64 72 100 84 3 72 100 114 4 72 100 184 5 72 100 270 a) Fill the table for total cost (TC), marginal cost (MC), total revenue (TR), marginal revenue (MR), and profit or loss (P/L). Make sure to show your work for at least one line of Q. b) What is the profit maximizing quantity? Justify your answer. NOTE: this is a FILE UPLOAD question. Work your solution an excel file and upload it, or write down your solution in a piece of paper, take a picture with VOur smartphone and unload the nicture

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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 $6.00 per pair. Buddies Production Costs Quantity MC ATC of Ear Buds ($) ($) 20 1.00 25 2.00 1.20 30 2.46 1.41 35 3.51 1.71 40 4.11 2.01 45 5.43 2.39 50 5.99 2.75 55 8.47 3.27 Instructions: In part a, enter your answer as the closest given whole number. In parts b-d, round your answers to two decimal places. a. If Buddies wants to maximize profits, how many pairs of ear buds should it produce each week? pairs b. At the profit-maximizing quantity, what is the total cost of producing ear buds? 2$ c. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what will Buddies profit or loss be per week? 2$
Paulina sells beef in a competitive market where the price is $8 per pound. Her total revenue and total costs are given in the table below. Quantity of Total revenue Total cost beef (lb.) 0 1 2 3 4 ($) 0 8 16 24 32 ($) 4 8 13 19 27 Profit ($) 0 8 pounds Marginal revenue ($) c. What is the profit-maximizing (or loss-minimizing) quantity? Marginal Marginal cost ($) profit ($) a. Complete the table. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. b. At what quantity does marginal revenue equal marginal cost? pounds A
The following graph plots the marginal cost (MC) curve, average total cost (ATC) curve, and average variable cost (AVC) curve for a firm operating in the competitive market for snapback hats. COSTS (Dollars) 100 100 80 90 80 20 70 70 HD 50 40 30 20 0 11 D 10 O MC Price (Dollars per snapback) 15 15 20 25 55 70 85 201 ATC 0 D AVC O 50 60 70 80 QUANTITY (Thousands of snapbacks) For every price level given in the following table, use the graph to determine the profit-maximizing quantity of snapbacks for the firm. Further, select whether the firm will choose to produce, shut down, or be indifferent between the two in the short run. (Assume that when price exactly equals average variable cost, the firm is indifferent between producing zero snapbacks and the profit-maximizing quantity of snapbacks.) Lastly, determine whether the firm will earn a profit, incur a loss, or break even at each price. □ Quantity (Snapbacks) BO 100 ▼ On the following graph, use the orange points (square symbol) to…
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9. Problems and Applications Q9 The market for apple pies in the city of Ectenia is competitive and has the following demand schedule: Each producer in the market has a fixed cost of $6 and the following marginal cost: Quantity Marginal Cost (Dollars) 1 1 2 3 4 5 6 Complete the following table by computing the total cost and average total cost for each quantity produced. Quantity Total Cost Average Total Cost (Ples) (Dollars) (Dollars) 1 2 3 4 3 8 10 12 14 The price of a pie is now $11. At a price of $11, making a profit of O True O Fal pies are sold in the market. Each producer makes True or False: The market is in long-run equilibrium. Suppose that in the long run there is free entry and exit. In the long run, each producer earns a profit of each producer makes pies, so there are The market price is producers operating. pies, so there are At this price, producers in this market, each pies are sold in this market, and
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I DO NOT NEED THE CHART I ONLY NEED THE QUESTIONS Quantity of Output Total Cost Marginal Cost Average Total Cost 0 $100 1 $120 2 $135 3 $145 4 $160 5 $180 6 $205 7 $240 8 $285 9 $350 10 $440 Approximately where do you think the price will end up in this market over the long run? Explain your answer. Last, instead of assuming a given price, how would you go about finding the equilibrium price if you were given information on market demand? Assume that this market is made up of 10 identical sellers with costs as above, and that market demand can be given as below. It may be useful to construct a column for market supply knowing the cost information per seller and that there are ten identical sellers in the market.
Consider the perfectly competitive market for sports jackets. The following graph shows the marginal cost ( MCMC ), average total cost ( ATCATC ), and average variable cost ( AVCAVC ) curves for a typical firm in the industry.
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Complete the table below to answer questions 46. and 47.: Price Quantity Cost $18 16 14 12 10 8 642 012345678 Total Revenue Marginal Revenue Marginal $0 X $2.00 $16 $16 2.50 28 12 3.00 3.50 4.00 4.50 5.00 5.50 6.00 What is the profit-maximizing number of units to produce? What is the profit-maximizing price? 46 46. a. 2 b. 4 c. 6 d. 8 47. a. $14 b. $10 c. $6 d. $4