A. What is the profit-maximizing price and quantity?B. What is the revenue-maximizing price and quantity?C. When total cost exceeds total revenue, profits are? Complete Table Below (1-9):Sum all orthefixed costs fromPrice x Quatity above. TFCdoes not varyfrom unit toUnit variable Totalcost (average Variable Cost+ Total FixedCost TFC +|TVCTotalRevenue -Total CostTR - TCChange in|(TotalRevenue)|/(Change in|Quantity)|Change in|(Total Cost)/(Change inQuantity)Total Cost /QuantityTC / QTotalVariable Cost/ QuantityTVC / QBasic Formulavariable) xQuantityAVC x QPx QExcel formulas for the various functions: Usingthe power of Excel (first row formulas) use Fill-Down function to complete each column tosave yourself from creating a calculation ineach cell (very time-consuming). Ignore the :mark when creating the formulas. See thenext worksheet for instructios for using the fill-:=sum (d15- :=sum(g15-d14)/(c15-c14)g14)/(c15-c14):=b14*c14Enter figure:=50*C14:=e14+f14:=d14-g14:=g15/c15:=f15/c153) TotalVariable Cost4) Total Cost(TVC)6) MarginalRevenue (MR) Cost (MC)-$3508) AverageTotal Cost9) AverageVariable Cost(AVC)Price/Demand Curve(surfboards)1) Total Revenue 2) Total FixedCost (TFC)$3007) Marginal|Quantity$300$290(TR)(TC)5) Profit(ATC)1$60050$650$580$280$260350.0250.0200.0170.0150.02$600100$700-$12050.0050$600$600$90$280$2803$840150$75050.0050$2704200$240$1,080$1,300$1,500$1,680$1,840$1,980$2,100$2,200$2,280$2,340$2,380$2,400$2,400$2,380$2,340$2,280$2,200$2,100$80050.0050250$450$600$730$260$600$850$22050.0050$2506$600300$900$20050.005050$180$160$140$2407$600350$95050.00135.7$1,000$1,050$1,100$1,150$1,200$1,250$1,300$1,350$1,400$1,450$1,500$1,550$1,600400$8405050$2308$60050.00125.0450500$2209$600$93050.00116.7$1,000$1,050$1,080$1,090|$1,080$1,050$1,00010$120$100$210$60050.00110.050104.5550600$20011$60050.0050$80$60$40$20$05050$19012$60050.00100.0$18013$60065050.0096.2$17014$60070050.0092.950$16015$60075050.0090.0508005050$15016$60050.0087.5$14085.385090017$600$930-$2050.00$13018$600$840-$4050.0083.350$120950$730$600$45019$600-$6050.0081.650$11020$6001000-$8050.0080.050$10021$6001050$1,650-$10050.0078.65088::::8:::::8:::::88

Price times quantity gives total revenue of a firm. Profit is the difference between total revenue…

Answered: What is the profit-maximizing price and…

What is the profit-maximizing price and quantity? B. What is the revenue-maximizing price and quantity? C. When total cost exceeds total revenue, profits are?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Answer both questions please as they are related
A profit-maximizing firm in a competitive market is currently producing 500 units of output. It has average revenue of $10, average total cost of $8, and fixed costs of $200. a. What is its profit? b. What is its marginal cost? c. What is its average variable cost? d. Is the efficient scale of the firm more than, less than, or exactly 100 units?
I. A company produces at an output level where marginal cost is equal to marginal revenue and has the following revenue and cost levels: Total revenue = $1,450 Total cost = $1,500 Total variable cost = $1,300 What would you suggest? a. Shut down. b. Continue to produce because the loss is less than the total fixed cost. c. Increase production to lower the marginal cost. e. Raise the price. II. At current long-run production levels, the marginal revenue of a competitive firm is $15 and the marginal cost of the firm is $15. If the market is perfectly competitive, the firm should a. cut back on production. b. stop production all together. c. produce more. d. continue producing at current levels.
7. Study Questions and Problems #7 Use the data from the following demand schedule to answer the questions that follow. Price (P) (Dollars) Total Revenue (TR) Marginal Revenue (MR) Quantity Demanded (Q) (Dollars) (Dollars) 20.00 0 0.00 18.00 18.00 1 18.00 14.00 16.00 2 32.00 10.00 14.00 3 42.00 6.00 12.00 4 48.00 2.00 10.00 5 50.00 -2.00 8.00 6 48.00 -6.00 6.00 7 42.00 -10.00 4.00 8 32.00 -14.00 2.00 9 18.00 -18.00 0.00 10 0.00 Make the unrealistic assumption that production is costless for the monopolist in this question. The monopolist will charge a price of $ for the monopolist. per unit and sell units. This will yield an economic profit of S Now assume the marginal cost is above zero and is equal to the marginal revenue of the fourth unit. The monopolist will now charge monopolist will now earn price and produce when production was costless. In turn, the economic profit compared to when production was costless.
A monopolistʹs supply of a good is a. independent of the monopolistʹs demand curve. b. given by the portion of the monopolistʹs marginal cost curve that lies above its average variable cost curve. c. dependent on the monopolistʹs demand curve and its marginal cost curve. d. given by the portion of the monopolistʹs average variable cost curve that lies above its marginal cost curve.
Price, MR, AR, Costs in Dollars MC АТС $7.00 AVC $6.00 D (AR) The total maximum economic profit in this figure is: MR Quantity Produced 400 Select one: a. $700 b. $2400 c. $400 d. $2800
22. Which one of these will continuously increase as more products are produced? a. None of the choices b. Variable cost c. Average fixed cost d. Fixed cost
10. The following is a total cost curve. Sketch the corresponding marginal cost curve. If the price of output is $3 and there are no fixed costs, what is the profit-maximizing level of output?
What is the relation between the marginal revenue amd the average revenue? a. the marginal revenue is higher than the average revenue. b.the two are unrelated. c.the marginal revenue is lower than the average revenue. d.the marginal revenue curve is below the average revenue curve until the point where revenue are maximised and then it is above it
Marginal revenue is defined as Selected Answer: b. the change in total revenue divided by quantity. Answers: a. total revenue divided by quantity. b. the change in total revenue divided by quantity. c. the change in total revenue divided by the change in quantity. d. total revenue minus total cost. e. the change in total revenue divided by the change in per unit price.
3. GB Motor Company produced 600,000 bikes at a price of $440 each. The company made a profit of $60 million that year. The CEO of the company told a journalist that he intended to reduce the price of their bikes to $360, and he expected to sell 900,000 bikes at that price. a) Did GB Motor Company expect the total revenue they receive from selling the bikes to rise or fall following the price cut?