Please see how I've responded to the 2 questions below...Do you concur are am I off track here. What will the dollar amount of economic gain or economic loss be?The amount of loss would be Quantity*(ATC-Price)= 9*(17.5-16)=$13.5 What will be the price and quantity where the firm will shut down?Price where there is not able to recover average variable cost in the market. Shut down price is $12 and Quantity is 7 units **Text Transcription for Educational Website:****Questions:**1. What will the dollar amount of economic gain or economic loss be?2. What will be the price and quantity where the firm will shut down?**Graph Explanation:**The graph illustrates several key economic curves used in microeconomics to determine pricing and production levels for firms. The horizontal axis represents quantity (Q), while the vertical axis represents price in dollars ($).**Curves Shown:**1. **MC (Marginal Cost):** This upward-sloping curve shows the cost of producing one more unit of a good.2. **ATC (Average Total Cost):** This U-shaped curve represents the total cost per unit of output. It initially declines, reaching a minimum point, and then rises.3. **AVC (Average Variable Cost):** This curve lies below the ATC and represents the variable cost per unit of output.4. **D = AR (Demand = Average Revenue):** This horizontal line indicates that the firm is a price taker, commonly associated with perfect competition, where Price = Demand = Average Revenue.5. **MR (Marginal Revenue):** This downward-sloping line represents the additional revenue gained by selling one more unit.**Points of Interest:**- The intersection of MR and MC determines the optimal output level for maximizing profit.- The shutdown point is where the price falls below the AVC curve, meaning the firm cannot cover variable costs and should cease production to minimize losses.- At quantity 4, the ATC is above the demand curve, indicating an economic loss.- At quantity 9, where the MC intersects MR, is the profit-maximizing output.- The shutdown price is at a price level of 14, where the AVC meets the demand curve.Overall, this analysis allows firms to make informed decisions about production levels, pricing, and potential shutdown scenarios.

The firm maximizes profit by producing at MR = MC and charges the maximum price consumers are…

Answered: What will the dollar amount of economic…

What will the dollar amount of economic gain or economic loss be? What will be the price and quantity where the firm will shut down? MC 22 ATC 18 17.5 AVC 16 14 13 12 D = AR MR 79 11

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please diagram the revenue and profit situation (which would also include the cost curves) for a producer of a highly elastic (but not perfectly elastic) good of your choice (a restaurant, boutique clothing store, etc.). Under what circumstances would it make sense for them to raise their price? While profit maximization is the main goal for most firms (and one which you should be able to represent on a diagram), you may wish to consider alternative goals depending upon the business you have chosen. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________. Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.
Consider a form that is participating in this market (refer to P, Q (firm quantity), ATC, and AVC in the table below). Graphically illustrate this firm, graph the ATX, AVC, MC, and demand curves and calculate the total revenue, total cost, total fixed cost, total variable cost, and profit for this firm. identify the profit case. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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At these levels of output the marginal revenue in the manufactured items market is and the marginal revenue in the semimanufactured raw materials market is . At these prices, the price elasticity of demand in the manufactured items market is and the the price elasticity of demand in the semimanufactured raw materials market is . (Hint: ED=PMR−P��=�MR−�) What are the total profits if the company is effectively able to charge different prices in the two markets? . If the company is required by law to charge the same per-ton rate to all users, the new profit-maximizing level of price and output are per ton and tons respectively. The total profits in this situation is .
Economics
A) Find the price function and then the TR function. B) Write the MR and MC functions below. Remember: MR = dTR/dQ and MC = dSTC/dQ. C) What positive value of Q will maximize total profit? Remember: setting MR = MC and solving for Q will give you the Q that maximizes total profit. The value of Q you get should not be zero or negative.
Q2.The management of an ‘Electronic Goods’ manufacturing company asked you to give an advice about changing its current production plan, given the following information:- Annual production plan of computers is 4200 computers.- Total cost of production is OMR 824000.- Fixed cost is OMR 320000.- Revenue function: R = 460.2Q – 0.05Q2 1-Use the above information to formulate the price function and the total cost function, and determine the following: 1) Profit-maximizing quantity.2) Profit-maximizing price.3) Maximum profit value.4) Revenue-maximizing quantity. 2-Should the company change its current annual production plan of computers in order to maximize its profit?
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What is the profit maximizing quantity of output? What price should the firm charge for its output? For that price and quantity does the firm make economic profit, economic loss or breaks even? How do you know? Explain your answer.