Exploring Microeconomics
8th Edition
ISBN: 9781544339443
Author: Sexton, Robert L.
Publisher: Sage Publications, Inc., Corwin, Cq Press,
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Question
Chapter 12, Problem 6P
To determine
(a)
The Calculation of Profit Maximizing Output.
To determine
(b)
The Calculation of Profit Maximizing Output.
To determine
(c)
The Calculation of Profit Maximizing Output.
Expert Solution & Answer
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Students have asked these similar questions
a. Graph a purely competitive market showing the point of equilibrium at a price of $150 and a total product of
400,000. b. Next to this graph, graph the purely competitive firm. What price will the firm charge for the product? Will
they charge $150, less than $150, or more than $150? c. Show the demand, average revenue, and marginal revenue
curve on the graph for the firm. d. Show the profit maximizing quantity for the firm at 250 units of output, or tp. e.
Show this firm making a profit of $5,000, making sure to solve for the numerical value for the ATC at the quantity, or tp,
of 250, and showing the profit area on the graph.
“An upward – sloping demand curve doesn’t make sense in my business. All I know is that if I raise my prices, revenue doesn’t go up, it goes down. I don’t sell more products, I sell less. “Can you straighten out this business man’s thinking?
Answer the following questions based on the
accompanying graph.
Price
ATC
MC
$11
$8
$5
$3
MR
D
200
300
Quantity
a. What are the profit-maximizing price and quantity?
b. At the profit-maximizing price and quantity, what
are the total profits or losses made by this firm?
Chapter 12 Solutions
Exploring Microeconomics
Knowledge Booster
Similar questions
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