Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe4f47801-932f-4cdd-81a4-58e47bfc9c5d%2Fcd98c53a-5181-4a20-9a92-2de448b7980b%2Fz8itbad_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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