Using the table for a firm (NOTE: You should use the rule of profit maximization),Price (S)Q (Demand)TR26122218314106456TC263444567086MRΝΑMCΝΑ15. Complete the table.16. Using the table, draw the demand curve, MR curve, and MC curve in one diagram.17. Determine the output and price of the profit-maximizing firm.(NOTE: you should explicitly use MR, MC for profit-max condition.)18. Why can the firm not charge higher than the price you choose in #17?19. Determine the profit of the proft-maximizing firm.20. Determine the profit of the proft-maximizing firm in the long run.

Total revenue is price times the quantity. i.e., TR = Price * Quantity.…

Answered: Using the table for a firm (NOTE: You…

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Economics

Using the table for a firm (NOTE: You should use the rule of profit maximization),

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

Using the table for a firm (NOTE: You should use the rule of profit maximization),
Price (S)
Q (Demand)
TR
26
1
22
2
18
3
14
10
6
4
5
6
TC
26
34
44
56
70
86
MR
ΝΑ
MC
ΝΑ
15. Complete the table.
16. Using the table, draw the demand curve, MR curve, and MC curve in one diagram.
17. Determine the output and price of the profit-maximizing firm.
(NOTE: you should explicitly use MR, MC for profit-max condition.)
18. Why can the firm not charge higher than the price you choose in #17?
19. Determine the profit of the proft-maximizing firm.
20. Determine the profit of the proft-maximizing firm in the long run.

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