Table 1Change inprofit (£)ProfitMarginalOutput(Units)(오)TotalMarginalcost (£)TotalRevenuecost (£)(오)revenue(오)31621283181242417302336307423884847

Marginal revenue is the additional revenue earned by selling an additional unit of output. Marginal…

Answered: Total Revenue Change in profit (£)…

Total Revenue Change in profit (£) Total Marginal Output (Units) Profit Marginal cost (£) cost (£) (£) revenue (£) (£) 1 6. 5 12 8 18 12 4 24 17 30 23 36 30 7 42 38 8 48 47

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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File 20 19 Home 23 24 25 Insert Calibri 26 X ✓ fx 27 28 29 Draw Page Layout く 11 A B C D G H Question 3: Profit Maximization for a Perfectly Competitive Firm (Parts a - g) E Answers: B TR =P*Q MR = change in TR/ change in Q MC = change in TC/ change in Q Profit= TR - TC Profit is max at Q, such that MR = MC. Parts (a) - (c): P Q Formulas F TR Data SV You will complete the rest of table as specified in the following parts of this assignment. b) Use Excel functions to calculate TC = 20 + 10*Q + 2*Q² and MC. Verify that MC = 10 + 4*Q. 1 c) Use Excel functions to calculate Profit = TR - TC. 2 d) Use the MAX function in Excel to find the highest profit this perfectly competitive firm can earn. 3 What is the profit-maximizing output? Verify that it satisfies the condition MR = MC. 4 5 6 MR Av... Review TC I e) Use the MIN function in Excel to find the break-even price of this company. f) Re-do the table you created in the previous parts if FC increases to $30. Compare the highest profit this…
(a) Complete the table.(b) Identify the equilibrium output and price.(c) How much profits does the firm earn at equilibrium output?(d) Is the firm operating in a perfect or imperfect market and is the? firm earning supernormal profit, subnormal profit or normal profit
1. Consider a firm with the following cost and inverse demand functions. Cost($) 20 3 Cost Function N 3 quantity Price($) 16 13 30 10 Inverse Demand quantity (a) What are the average costs of producing 1, 2, and 3 units for this firm? (b) What are the marginal costs of producing first, second, and third units for this firm? (c) Does this firm enjoy either economies or diseconomies of scale? (d) What are the profits of producing 1, 2, and 3 units for this firm? (e) When does the firm maximize its profit? Select from producing 1, 2, and 3 units.
Price Total cost Quantity (tickets per show) Big Top is the only circus in the nation. The table (dollars per ticket) (dollars per show) sets out the demand schedule for circus tickets and the cost schedule for producing the circus. Calculate Big Top's profit-maximizing price, output, and economic profit if it charges a single price for all tickets. You are constructing a table with total costs ,average total costs, and 20 1,000 1,600 2,200 2,800 3,400 4,000 4,600 5,200 5,800 а. 18 100 16 200 14 300 12 400 total revenue. 10 500 600 b. When Big Top maximizes profit, what is consumer surplus and producer surplus and is the circus efficient? Explain why or why not. You are constructing a table showing total revenue and marginal revenue. You are also constructing a graph to show consumer surplus and producer surplus the 700 4 800 At the market equilibrium, no children under 10 years old attend the circus. Big Top offers children under 10 a discount of 50 percent. How will this discount…
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Price of Corn $7 MC $6 $5 ATC $4 $3 AVC $2 $1 0. 1000 2000 3000 4000 5000 6000 7000 8000 Bushels of Corn (a) If the market price for corn in this market was $5, how many bushels of corn would Cornwallis produce in the short-run in order to maximize his profits? [ Select ] (b) At the market price of $5, what is the total REVENUE Cornwallis will collect in the short-run? 1Select ] (c) At the market price of $5, what is the total PROFIT Cornwallis will earn in the short-run? Select
Business Selling Price Total Sold Cost of Goods Sold Sales Profit First Aid Kits 28.95 25 400 723.75 323.75 Leg Casts 50 10 300 500 200 Rubbing Liniment 12 5 5 60 55 Resuscitators 70 2 130 140 10 Sun Burn Ointment 25 25 1000 625 -375 Question #1 Economists are always calculating the costs and the benefits of alternatives. Economic profit, as distinct from the accounting profit you calculated in question 1, is the additional profit that is earned by choosing the best, rather than the second best, profit opportunity. Profit maximizers should always calculate economic as well as accounting profit. What is the economic profit you would receive if you decided to purchase the business's best profit maker?
Refer to the figure and table to answer three questions. Price or Cost (dollars per bushel) 18 16 14 Price Marginal revenue 12 10 8 23450 6 4 N 0 Number of Bushels per Day 0 1 1 2 Price $13 13 13 13 13 13 3 4 5 Quantity (bushels of fish per day) Total Revenue c. Total profit or loss. $ SO 13 26 39 52 65 bushel(s) b. Profit or loss per bushel. per bushel Marginal cost 6 $10 15 22 31 44 61 Total Total Cost Profit $-10 -2 4 7 8 8 4 o Marginal Marginal Revenue Cost $13 13 13 13 13 $5 7 9 13 17 If the price of catfish changed from $13 to $12 per bushel, determine the Instructions: In parts a and c. enter your responses as a whole number. In part b, round your response to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) In front of those numbers. a. Profit-maximizing output. O
Total Output 1 2 3 4 5 6 7 80 9 10 A B 8 D $20; $27.33 $10; $10.40 $24; $27.33 Price $30; $20.50 $100 90 80 70 60 50 40 30 20 Marginal Revenue 10 $100 80 60 40 20 -20 -40 -60 Average Total Cost -80 $100.00 63.00 52.67 49.50 49.60 50.00 52.29 55.75 60.67 67.60 130 Refer to the data for a nondiscriminating monopolist. At its profit-maximizing output, this firm's price will exceed its marginal cost and its average total cost by_ by $30 26 32 Marginal Cost 40 50 52 66 80 100
Which of the following statements is (are) correct? (x) Ann decides to open her own business and earns $84,000 in accounting profit the first year. When deciding to open her own business, she turned down three separate job offers with annual salaries of $56,000, $60,000, and $62,000. Ann's economic profit from running her own business is more than $24,000. (y) Bernadette has decided to start her own recording studio. To purchase the necessary equipment, Bernadette withdrew $15,000 from her savings account, which was earning 3.0% interest, and borrowed an additional $25,000 from the bank at an interest rate of 7.5%. Bernadette's annual opportunity cost of the financial capital that has been invested in the business is more than $2,250. (z) Maureen decides to open her own business and earns $25,000 in economic profit the first year. If Maureen faces implicit costs then her accounting profit is necessarily larger than $25,000. (x), (y) and (z) (x) and (y), only (x) and…
q 0 1 2 3 4 5 6 TFC $5 5 5 5 5 5 5 TVC $0 3 Marginal revenue is 5 9 16 25 36 MC $3 2 4 7 9 11 P= MR $5 5 5 5 5 5 5 TR $0 5 10 15 20 25 30 TC $5 8 10 14 21 30 41 Profit $-5 - 3 0 1 - 1 -5 - 11 A profit-maximizing firm should produce a quantity of 3 units. (Enter your response as a whole number.) marginal cost for the first units of output. If the company decides to produce more than units, the marginal cost would exceed marginal revenue and profit would
2. Calculate accounting profit and economic profit for each of the following firms (amounts are in millions of dollars) Sales Wages and salaries cost of equity capital interest on debt cost of materials General Motors $50,091 29052 12100 7585 6500 Barclays Bank 5730 3932 750 275 556 Microsoft 2750 400 35 5 1650