Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter6: Simple Pricing
Section: Chapter Questions
Problem 6.1IP
Related questions
Question
Hi! I need help with this microeconomics question :)
The last part of the question is:
True or False: The industry is in a long-run equilibrium.
![On the following graph, use the green points (triangle symbol) to graph the marginal-revenue curve, then use the orange points (square symbol) to
plot the marginal-cost curve. (Note: Be sure to plot from left to right and to plot between integers. For example, if the marginal cost of increasing
production from 1 unit to 2 units is $5, then you would plot a point at (1.5, 5).)
(?
10
9
Marginal Revenue
8
7
Marginal Cost
4
2
1
3
4
7
Quantity
The marginal-revenue curve and the marginal-cost curve cross at a quantity
This firm
in a competitive industry, because marginal revenue is
as quantity increases.
Revenue and Costs
LO](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc67cbb9b-1a03-4c4c-932b-f0d60071ca9c%2Fd93b24ee-b172-4ee4-a738-626a2d0971ea%2F9qxiaj_processed.png&w=3840&q=75)
Transcribed Image Text:On the following graph, use the green points (triangle symbol) to graph the marginal-revenue curve, then use the orange points (square symbol) to
plot the marginal-cost curve. (Note: Be sure to plot from left to right and to plot between integers. For example, if the marginal cost of increasing
production from 1 unit to 2 units is $5, then you would plot a point at (1.5, 5).)
(?
10
9
Marginal Revenue
8
7
Marginal Cost
4
2
1
3
4
7
Quantity
The marginal-revenue curve and the marginal-cost curve cross at a quantity
This firm
in a competitive industry, because marginal revenue is
as quantity increases.
Revenue and Costs
LO
![3. Problems and Applications Q3
Consider total cost and total revenue, given in the following table:
In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.)
Total Cost
Marginal Cost
Total Revenue
Marginal Revenue
Profit
Quantity
(Dollars)
(Dollars)
(Dollars)
(Dollars)
(Dollars)
1
8
7
10
14
3
13
21
4
17
28
24
35
32
42
7
42
49
In order to maximize profit, how many units should the firm produce? Check all that apply.
4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc67cbb9b-1a03-4c4c-932b-f0d60071ca9c%2Fd93b24ee-b172-4ee4-a738-626a2d0971ea%2Fh32du3a_processed.png&w=3840&q=75)
Transcribed Image Text:3. Problems and Applications Q3
Consider total cost and total revenue, given in the following table:
In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.)
Total Cost
Marginal Cost
Total Revenue
Marginal Revenue
Profit
Quantity
(Dollars)
(Dollars)
(Dollars)
(Dollars)
(Dollars)
1
8
7
10
14
3
13
21
4
17
28
24
35
32
42
7
42
49
In order to maximize profit, how many units should the firm produce? Check all that apply.
4
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