Bundle: Principles of Economics, Loose-leaf Version, 8th + LMS Integrated MindTap Economics, 2 terms (12 months) Printed Access Card
8th Edition
ISBN: 9781337607735
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 14, Problem 7PA
Subpart (a):
To determine
Calculate the profit.
Subpart (b):
To determine
The profit, marginal cost, average variable cost , efficient scale of the firm is more or less than or exactly 100 units.
Subpart (c):
To determine
The profit, marginal cost, average variable cost, efficient scale of the firm is more or less than or exactly 100 units.
Subpart (d):
To determine
The profit, marginal cost, average variable cost, efficient scale of the firm is more or less than or exactly 100 units.
Expert Solution & Answer
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Students have asked these similar questions
A profit-maximizing firm in a competitive market is currently producing 500 units of output. It has
average revenue of $10, average total cost of $8, and fixed costs of $200. a. What is its profit? b.
What is its marginal cost? c. What is its average variable cost? d. Is the efficient scale of the firm more
than, less than, or exactly 100 units?
Price
MC
ATC
IC
MR
Quantity
a. What area(s) of the graph represent(s) total revenue for this firm if it was profit
maximizing?
b. What area(s) of the graph represent(s) total cost for this firm if it was profit
maximizing?
c. What area(s) of the graph represent(s) profits for this firm if it was profit maximizing?
d. What area(s) of the graph represent(s) deadweight loss if the firm was profit
maximizing?
0
1
2
3
4
5
Problem 1. Fill out the missing data.
Quantity
Total Cost
Marginal Cost
Fixed Cost
Variable Cost
Average Total Cost
-
Average Variable Cost
7
10
37
22.5
10.50
15
The market price for the firm's output is $14.50.
a) What quantity will the firm produce?
Q =
b) What is the firm's profit?
Profit=
P =
P =
c) What is the breakeven price?
d) What is the shutdown price?
f) Are consumers or producers affected by the tax more? Explain.
Chapter 14 Solutions
Bundle: Principles of Economics, Loose-leaf Version, 8th + LMS Integrated MindTap Economics, 2 terms (12 months) Printed Access Card
Ch. 14.1 - Prob. 1QQCh. 14.2 - How does a competitive firm determine its...Ch. 14.3 - Prob. 3QQCh. 14 - Prob. 1CQQCh. 14 - Prob. 2CQQCh. 14 - Prob. 3CQQCh. 14 - Prob. 4CQQCh. 14 - Prob. 5CQQCh. 14 - Prob. 6CQQCh. 14 - Prob. 1QR
Ch. 14 - Prob. 2QRCh. 14 - Prob. 3QRCh. 14 - Prob. 4QRCh. 14 - Prob. 5QRCh. 14 - Prob. 6QRCh. 14 - Prob. 7QRCh. 14 - Prob. 8QRCh. 14 - Prob. 1PACh. 14 - Prob. 2PACh. 14 - Prob. 3PACh. 14 - Prob. 4PACh. 14 - Prob. 5PACh. 14 - A firm in a competitive market receives 500 in...Ch. 14 - Prob. 7PACh. 14 - Prob. 8PACh. 14 - Prob. 9PACh. 14 - Prob. 10PACh. 14 - Suppose that each firm in a competitive industry...
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