The graph presents the costs and revenue for a purely Cost and revenue competitive firm, where the market price is equal to $400 per unit of output. Use this information to determine the profit-maximizing output and profit for this firm. $800 (13,800) 750 700 Marginal cost 650 What is the profit-maximizing output of this purely 600 Average total cost (12,600) competitive firm? Round the answer to the nearest 550 whole number. 500 (4,500) (6,450) (12,450), 450 (10,400) 400 Marginal revenue (9,350) 350 profit maximizing output = units of output 300 (6,250) 250 Average variable cost (4,200) 200 What is the profit for the purely competitive firm that 150 (1,150) produces at the output level in the first question. Round the 100 answer to the nearest whole number. 50

The graph presents the costs and revenue for a purely Cost and revenue competitive firm, where the market price is equal to $400 per unit of output. Use this information to determine the profit-maximizing output and profit for this firm. $800 (13,800) 750 700 Marginal cost 650 What is the profit-maximizing output of this purely 600 Average total cost (12,600) competitive firm? Round the answer to the nearest 550 whole number. 500 (4,500) (6,450) (12,450), 450 (10,400) 400 Marginal revenue (9,350) 350 profit maximizing output = units of output 300 (6,250) 250 Average variable cost (4,200) 200 What is the profit for the purely competitive firm that 150 (1,150) produces at the output level in the first question. Round the 100 answer to the nearest whole number. 50

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Tåble Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs Costs 0. $50.00 $0.00 1 $50.00 $70.00 $50.00 $120.00 $50.00 $150.00 4 $50.00 $220.00 $50.00 $300.00 Refer to Table Cost.EX2. When production is 3 units, the firm's average total cost is'about O $66.67 $68.67 No answer text provided. O No answer text provided.
2. For the following total revenue and total cost functions of a firm: TR = 800Q – 10Q2 TC = (2/3)Q3 -30Q2 + 672Q +4000 (a) Determine the level of output at which the firm maximizes total profit (b) Calculate the profit (need step by step, please)
A firm is producing and selling some output at an average variable cost of $8 per unit and bringing in a total revenue of $400. If the firm is currently indifferent between shutting down and continuing to operate in the short run and has a total cost of $1200. What would be the firms average fixed cost of producing 80 units?
the orange square points on the marginal cost curve from low to high(16,12) (24,20),(30,36),(32,44),(34,52),(38,72)
Suppose that firm 1 is a restaurant, whose costs are ingredients, staff and space. Ingredients and staff are paid for weekly and staff can be hired or fired at will. The rental for the space is a one year lease, to move out of this space and into a smaller or larger one would take at least one year. Firm 2 is a door-to-door sales firm where the costs are inventory and staff. Both are paid every two weeks, and staff can be fired or fired at will (but must be paid for the current two weeks) while inventory can be bought or sold within a week. Is one month within the “short run” for firm 1? Is one month within the “short run” for firm 2? Explain your answer.
3. Gazelle Corp, a sports shoe firm, is currently selling 800 pairs of a certain shoe per month. It is currently charging a price of £40, but this has recently been reduced from £45, because sales were only reaching 750 units per month. Its total costs are £28,000 per month, and these have risen £1500 due to the increase in sales. a) Derive the cost and demand functions for the firm, assuming these are both linear. b) Calculate the price elasticity of demand at the current price. c) Comment on the firm's existing strategy in terms of profit maximization, without doing any calculations. d) Calculate the profit-maximizing price and output. e) Calculate the amount of profit that the firm is currently foregoing.
Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs (TFC) Costs (TVC) $40.00 $0.00 $40.00 $40.00 4 $40.00 $90.00 9. $40.00 $130.00 8. $40.00 $190.00 10 $40.00 $260.00 Refer to Table Cost.EX2. For 8 units, the average total cost is about O $23.75 O $26.75 O $30.00 $28.75
Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs (TFC) Costs (TVC) $30.00 $0.00 $30.00 $40.00 9. $30.00 $90.00 6. 12 $30.00 $130.00 $30.00 $190.00 15 $30.00 $260.00 Refer to Table Cost.EX2. For the 6 units, the average total cost is about O $5.00 O S20.00 O $16.67 O $15.00
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.
Output and Cost Information Output Total Fixed Cost Total Variable Cost 1 $20 $30 2 $20 $70 3 $20 $100 4 $20 $120 5 $20 $180 6 $20 $268 The table above provides information for a firm in a purely competitive industry. The table above provides information for a firm in a purely competitive industry. Every firm in this industry has the same cost structure as above. From what you know about these firms’ cost structures, the highest possible price per unit that could exist as the market price in long-run equilibrium in this industry is $____________.
Question 11 11.1. Revenue is the same as profit. Do you agree with this statement? Justify your answer. 11.2. Using your knowledge of cost formulas and calculations for a firm producing in the short-run, redraw the table below in your answer book and complete the table by filling in the blank spaces. [Tip: Answers should be rounded off by two decimals]. (5) Total Average Variable Cost Average Total Cost (ATC) Total Total Cost Average Fixed Fixed Cost Marginal Cost (MC) Variable Quantity Cost Cost (TFC) (TVC) (TC) (AFC) (AVC) 80 80 1 80 12 80 12 2 80 28 40 14 54 3 34 114 26.67 38 6. 4 80 39 119 20 9.75 29.75 80 42 122 16 8.4 24.4 80 128 13.33 8 21.33 7 80 56 136 11.43 8 8 80 61 141 10 7.63 17.63 9 80 68 148 7.56 16.44 10 80 157 8 7.7 15.7 9. 11.3. Suppose a firm producing coffee provides you with the following information: Price = R100 Quantity = 150 units of coffee Cost of production = R9500 11.3.1. Calculate the total revenue of the firm. 11.3.2. Is the firm currently making a profit…