MICROECONOMICS
11th Edition
ISBN: 9781266686764
Author: Colander
Publisher: MCG
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Chapter 13, Problem 7QE
To determine
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What are the short-run and long-run costs of the production of Walmart?
100
90
80
70
60
ATC
50
40
30
20
AVC
МС О
10
+
0
0
5
10
15
20
30
35
40
45
50
QUANTITY (Thousands of shirts)
or each price in the following table, use the graph to determine the number of shirts this firm would produce in order to maximize its profit. Assume
hat when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero shirts and the profit-maximizing
uantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will
nake a profit, suffer a loss, or break even at each price.
Price
Quantity
(Dollars per shirt)
(Shirts)
Profit or Loss?
Produce or Shut Down?
Shut down
10
20,000
Loss
Shut down
20
10,000
Loss
Shut down
32
5,000
Loss
Either 0 or 37,500
Shut down
40
Loss
25
COSTS (Dollars)
Please show working and calculations.
Chapter 13 Solutions
MICROECONOMICS
Ch. 13.1 - Prob. 1QCh. 13.1 - Prob. 2QCh. 13.1 - Prob. 3QCh. 13.1 - Prob. 4QCh. 13.1 - Prob. 5QCh. 13.1 - Prob. 6QCh. 13.1 - Prob. 7QCh. 13.1 - Prob. 8QCh. 13.1 - Prob. 9QCh. 13.1 - Prob. 10Q
Ch. 13 - Prob. 1QECh. 13 - Prob. 2QECh. 13 - Prob. 3QECh. 13 - Prob. 4QECh. 13 - Prob. 5QECh. 13 - Prob. 6QECh. 13 - Prob. 7QECh. 13 - Prob. 8QECh. 13 - Prob. 9QECh. 13 - Prob. 10QECh. 13 - Prob. 11QECh. 13 - Prob. 12QECh. 13 - Prob. 13QECh. 13 - Prob. 14QECh. 13 - Prob. 15QECh. 13 - Prob. 16QECh. 13 - Prob. 17QECh. 13 - Prob. 18QECh. 13 - Prob. 19QECh. 13 - Prob. 20QECh. 13 - Prob. 1QAPCh. 13 - Prob. 2QAPCh. 13 - Prob. 3QAPCh. 13 - Prob. 4QAPCh. 13 - Prob. 5QAPCh. 13 - Prob. 1IPCh. 13 - Prob. 2IPCh. 13 - Prob. 3IPCh. 13 - Prob. 4IPCh. 13 - Prob. 5IP
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- How do you calculate a firm's total cost and total revenue?arrow_forwardA woman complained to “Dear Abby” that a laundry charged $1.25 each to launder and press her husband’s shirts, but for her shirts—the same description, only smaller—the laundry charged $3.50. When asked why, the owner said, “Women’s blouses cost more.” Abby suggested sending all the shirts in one bundle and enclosing a note saying, “There are no blouses here—these are all shirts.” Is the laundry practicing price discrimination, or is there really a $2.25 difference in cost? Assuming the laundry is engaging in price discrimination, why do men pay the lower price and women the higher? Could the laundry continue to separate markets if people followed Abby’s advice? What about the policing costs associated with separating the markets?arrow_forwardDescribe several ways a firm could lower their costs.arrow_forward
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