A profit-maximizing firm in a competitive industry has the cost structure shown in the table below.QuantityAverageTotal CostAverageFixed CostMarginalCost1_25.0020.004.20214.4010.003.60310.876.674.2049.405.006.0059.004.009.0069.333.3313.20710.262.8618.60811.702.5025.20913.622.2233.001016.002.0042.00Calculate this firm's shut-down price and explain your answer.What is this firm's supply curve? In answering this question, indicate the minimum price necessary for the firm to produce a positive quantity and the quantity it would produce at that minimum price? (Hint: Draw on your answer to part a.)If marginal revenue is $9, how much output will the firm produce, and how much profit will it make? Show your calculations.

AVC=ATC-AVC Quantity ATC AFC AVC MC 1 25.00 20.00 5.00 4.20 2 14.40 10.00 4.40 3.60 3 10.87…

Answered: A profit-maximizing firm in a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A profit-maximizing firm in a competitive industry has the cost structure shown in the table below.

Quantity	Average Total Cost	Average Fixed Cost	Marginal Cost
1_	25.00	20.00	4.20
2	14.40	10.00	3.60
3	10.87	6.67	4.20
4	9.40	5.00	6.00
5	9.00	4.00	9.00
6	9.33	3.33	13.20
7	10.26	2.86	18.60
8	11.70	2.50	25.20
9	13.62	2.22	33.00
10	16.00	2.00	42.00

Calculate this firm's shut-down price and explain your answer.
What is this firm's supply curve? In answering this question, indicate the minimum price necessary for the firm to produce a positive quantity and the quantity it would produce at that minimum price? (Hint: Draw on your answer to part a.)
If marginal revenue is $9, how much output will the firm produce, and how much profit will it make? Show your calculations.

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What is this firm's supply curve? In answering this question, indicate the minimum price necessary for the firm to produce a positive quantity and the quantity it would produce at that minimum price? (Hint: Draw on your answer to part a.)

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What is this firm's supply curve? In answering this question, indicate the minimum price necessary for the firm to produce a positive quantity and the quantity it would produce at that minimum price? (Hint: Draw on your answer to part a.)

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If marginal revenue is $9, how much output will the firm produce, and how much profit will it make? Show your calculations.

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