whether the firm should start to produce because in the first unit the MC is more than the price which is against the maximization rule

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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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 price which is against the maximization rule

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
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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