The price of a case of ball bearings is $60. Seeing that he can't make a profit, the company's chief executive officer (CEO) decides to shut down operations. The firm's profit in this case is 5 (Note: If the firm suffers a loss, enter a negative number in this cell.) True or False: This was a wise decision. True O False Vaguely remembering his introductory economics course, the company's chief financial officer tells the CEO it is better to produce 1 case of bll bearings, because marginal revenue equals marginal cost at that quantity. At this level of production, the firm's profit is S . (Note: If the firm suffers a loss, enter a negative number in this cell.). True or False: This is the best decision the firm can make. O True O Falre

The price of a case of ball bearings is $60. Seeing that he can't make a profit, the company's chief executive officer (CEO) decides to shut down operations. The firm's profit in this case is 5 (Note: If the firm suffers a loss, enter a negative number in this cell.) True or False: This was a wise decision. True O False Vaguely remembering his introductory economics course, the company's chief financial officer tells the CEO it is better to produce 1 case of bll bearings, because marginal revenue equals marginal cost at that quantity. At this level of production, the firm's profit is S . (Note: If the firm suffers a loss, enter a negative number in this cell.). True or False: This is the best decision the firm can make. O True O Falre

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 1 DA MC ATC AVC Quantity Observe the graph above. Based on the original price being set at P1, what assumptions would you make about the company's condition and what might happen O The company is profitable and making a very good profit O Company is barely at the break-even point or even below that point because the price of the product is set to cover just its variable costs which means the company would not survive long if the price of P1 remains the same O Company is making small profits in the short run O None of the above.
Answer all questions. Thank you
I was wondering what the answer to this problem in Krugman´s microeconomics book is: A benefit maximizer company has an economic loss of 10.000$ per year. Its fixed cost is 15.000$ per year. In the short term, should they keep producing or should the close the business? In the long run, should they stay in business? And if the company had a fixed cost of 6.000$ per year, should they stay in business in the long and short run? Thank you!
Fill in the blanks using information in the following table: Output per day Price ($) Total Costs ($) 0 80 40 1 75 45 2 70 48 3 65 56 4 60 66 5 55 88 6 50 143 7 45 223 8 40 423 The amount of total profits is maximized when the firm produces _ units of output. At that output level, marginal revenue is $_, average revenue is $_, and the amount of profits is $_.
Hayfever Farms is an 80-acre hay farm in Colorado. The owners are considering changing the farm's name to Blissful Acres and growing strawberries instead of hay. Use the table of marginal cost (MC) and marginal revenue (MR) to answer two questions. Number of acres MC $ MR $ (hay) MR $ (strawberries) 10 320 730 5600 20 200 730 5600 30 540 730 5600 40 730 730 5600 50 1200 730 5600 60 3200 730 5600 70 5600 730 5600 80 6700 730 5600 If they continue to only grow hay, how many acres should Hayfever Farms devote to growing hay in order to maximize profits? acres of hay: acres If the owners decide to only grow strawberries, how many acres should Blissful Acres devote to growing strawberries in order to maximize profits? acres of strawberries:
The graph attached illustrates the Demand, Marginal Revenue, Marginal Costs, Average Total Costs and Average variable Cost curves for a firm in a perfectly competitive market. What is the Optimum level of the output for the firm and what is the maximum price the firm can charge? How do you know? At this price and output combination does the firm make economic profit of economic loss? Explain your answer. Calculate the economic profit or loss? Show your calculations.
Draw a graph to explain as well Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
16 5 Use the table below to answer questions about Christina's Christmas Wreaths. Christina operates in a perfectly competitive market for wreaths. Christina's Costs and Revenue Quantity Average Variable (wreaths) Cost (dollars) 5 $14.00 6 - 15.00 7 CALL/M 16.00 8 22.00 9 28.00 10 34.00 wreaths Average Total Cost (dollars) $24.00 23.00 23.00 28.00 34.00 39.00 $ Instructions: In part a, enter your answer as a whole number. In parts b and c, round your answers to two decimal places. a. What is the profit-maximizing level of output for Christina's Christmas Wreaths? Marginal Cost (dollars) $20.00 b. What is the profit per unit if the profit-maximizing level of output is produced? $ olo L c. What is the total economic profit generated by producing the profit-maximizing output? $ % Marginal Revenue (dollars) $63.00 63.00 63.00 63.00 63.00 63.00 22.00 23.00 BIEL 63.00 82.00 TAO 84.00
Paragraph Styles 0592 92 x2-20 x 92x + 20 3. )An electronic manufacturing firm has the profit function P(x) - 20 2. Bx - dX + AD, for x items produced and sold as 3. 20,and revenue function R(x) -Ax output. a. Calculate the average cost for 1200 items produced and sold. b. Calculate the marginal cost when produced 800 items.