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 9PA
Subpart (a):
To determine
Calculate total cost.
Subpart (b):
To determine
Calculate profit.
Subpart (c):
To determine
Entry to the market.
Subpart (d):
To determine
Long run situation and entry to the market.
Expert Solution & Answer
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Suppose that each firm in a competitive industry has the following costs:
Total Cost: TC = 50+ 1/2q²
Marginal Cost: MC = q
where 9 is an individual firm's quantity produced.
The market demand curve for this product is:
Demand D = 160 - 4P
where P is the price and is the total quantity of the good.
Each firm's fixed cost is $
What is each firm's variable cost?
50+ 1/1/19
19²
1
29
9. Problems and Applications Q9
The market for apple pies in the city of Ectenia is competitive and has the following demand
schedule:
Price
Demand Schedule
Quantity Demanded
(Dollars)
(Pies)
1
1,200
2
1,100
3
1,000
4
900
Each producer in the market has a fixed cost of $6 and the following marginal cost:
Quantity Marginal Cost
(Pies)
1
(Dollars)
10
1382
23456
14
Complete the following table by computing the total cost and average total cost for each quantity
produced.
Quantity Total Cost Average Total Cost
(Pies)
1
2
3
4
5
6
(Dollars)
The price of a pie is now $11.
At a price of $11,
are
(Dollars)
pies are sold in the market. Each producer makes
producers in this market, each making a profit of $
pies, so there
Paulina sells beef in a competitive market where the price is $8 per pound. Her total revenue and total costs are given in the table
below.
Quantity of Total revenue Total cost
beef (lb.)
0
1
2
3
4
($)
0
8
16
24
32
($)
4
8
13
19
27
Profit ($)
0
8
pounds
Marginal
revenue ($)
c. What is the profit-maximizing (or loss-minimizing) quantity?
Marginal Marginal
cost ($) profit ($)
a. Complete the table.
Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in
front of those numbers.
b. At what quantity does marginal revenue equal marginal cost?
pounds
A
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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