Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
That is not what I was asking. I know how to solve the problem but what i was asking is whether the firm should start to produce because in the first unit the MC is more than the
![produces at the competitive industry. Assume that the total fixed costs are given
by $90.
Quantity of Output
0
1
2
3
4
5
6
Total Variable Cost
0
25
40
60
90
130
185
Marginal Cost
(i) Fill in the blanks for the column of the marginal cost.
(ii) Assume that the equilibrium price is $24. How many units of output will firm
Z choose to produce at this price? What is the total revenue, total cost, and
the profit?
(iii) Assume that the demand for product of Z increases and this results in an
increase in the equilibrium price from $24 to $48. How many units of output
will firm Z choose to produce in the new equilibrium price? What is the total
revenue, the total cost, and the profit of Z at this price?
3](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe64261ed-a22c-44ce-964e-050681d05be9%2Ff9b68c6a-bd61-4e59-920c-70278a51f802%2Fuzgqsb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:produces at the competitive industry. Assume that the total fixed costs are given
by $90.
Quantity of Output
0
1
2
3
4
5
6
Total Variable Cost
0
25
40
60
90
130
185
Marginal Cost
(i) Fill in the blanks for the column of the marginal cost.
(ii) Assume that the equilibrium price is $24. How many units of output will firm
Z choose to produce at this price? What is the total revenue, total cost, and
the profit?
(iii) Assume that the demand for product of Z increases and this results in an
increase in the equilibrium price from $24 to $48. How many units of output
will firm Z choose to produce in the new equilibrium price? What is the total
revenue, the total cost, and the profit of Z at this price?
3
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