Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 15, Problem 4SPPA
To determine
To calculate:
Determination of L's
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At a market price of $83 a batch, what quantity does Lin’s produce and what is the firm’s economic profit in the short run? Do firms enter or exit the market and what is Lin’s economic profit in the long run?
At a market price of $35.20 a batch, what quantity does Lin’s produce and what is the firm’s economic profit in the short run?
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A profit-maximising firm in a competitive market is currently producing 1,000
units of output. It has average revenue of $50, average total cost of $40 and fixed cost of $10,000.
a) What is its profit?
b) What is its marginal cost?
c) What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?
Chapter 15 Solutions
Foundations of Economics (8th Edition)
Ch. 15 - Prob. 1SPPACh. 15 - Prob. 2SPPACh. 15 - Prob. 3SPPACh. 15 - Prob. 4SPPACh. 15 - Prob. 5SPPACh. 15 - Prob. 6SPPACh. 15 - Prob. 7SPPACh. 15 - Prob. 8SPPACh. 15 - Prob. 9SPPACh. 15 - Prob. 10SPPA
Ch. 15 - Prob. 11SPPACh. 15 - Prob. 1IAPACh. 15 - Prob. 2IAPACh. 15 - Prob. 3IAPACh. 15 - Prob. 4IAPACh. 15 - Prob. 5IAPACh. 15 - Prob. 6IAPACh. 15 - Prob. 7IAPACh. 15 - Prob. 8IAPACh. 15 - Prob. 9IAPACh. 15 - Prob. 10IAPACh. 15 - Prob. 11IAPACh. 15 - Prob. 1MCQCh. 15 - Prob. 2MCQCh. 15 - Prob. 3MCQCh. 15 - Prob. 4MCQCh. 15 - Prob. 5MCQCh. 15 - Prob. 6MCQCh. 15 - Prob. 7MCQCh. 15 - Prob. 8MCQ
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- i need answer urgentarrow_forwardTyped plz and asap please provide a high quality solution give all steps as well as calculations and take care of plagiarism alsoarrow_forward1) What is total fixed cost at the profit-maximizing quantity? 2) Below what price will the firm shut-down? 3) What are operating losses / profit (If the firm does not shut-down)?arrow_forward
- In briefly please..arrow_forwardApex is a perfectly competitive firm. It has total fixed costs of $300/day and a daily variable cost schedule in the table below. Apex’s product sells for $200 per unit. Quantity (units) 0 1 2 3 4 5 6 7 8 9 10Total Variable Cost (TVC) 0 100 180 220 300 390 500 640 800 1000 1250Answer the following questions:a. What is the profit-maximizing level of output? Calculate Apex’s profit.b. If the market price dropped to $80, what is the profit-maximizing level of output? What is Apex’s profit (or loss) in this case?c. If the market price dropped further to $40, what is the profit-maximizing level of output? What is Apex’s profit (or loss) in this case?d. Comment on your answers to parts (2) and (3arrow_forwardNext question ice and cost (dolars per par) The graph shows the long-run situation facing a producer of running shoes. In the market for running shoes, all the firms face a similar demand curve and have similar cost curves 120- Draw a vertical arrow that shows the firm's markup at the profi-maximizing quantity. Label R. MC t004 What is a fim's markup? /ATC A fem'u markup is the amount by which exceeds OA price; average total cost 60 OB. price, marginal cost OC. average total cost marginal revenue OD. average total cost marginal cost 20- Describe the market of a firm in perfect competition MR O 25 7 100 1is e ths 200 zis Quantity (pain of shoes per week) A firm in perfect competition has OA a markup similar to a firm in monopolistic competition OB. no markup > Draw only the objects specfied in the question Oc. a negative markup O D. a markkup similar to a monopolyarrow_forward
- Koki's problem: a. A firm named "Koki" operating in pork market (perfectly competitive market) has the following short-run total cost. Fill in the cost table below Quantity 0 Total costs (Baht) 5 1 10 2 13 3 18 4 25 5 6 FC VC AVC ATC MC 34 45 b. Market's quantity demand for pork is given by the following table: Price (Baht) 11 10 8 6 2.5 Market's quantity demanded 300 500 800 1200 2500 Suppose there are 100 firms in this market (including Koki) that have identical costs to those of Koki. Find Koki's quantity supplied and the market's quantity supplied at each price Note: quantity supplied is the quantity that a firm is willing and able produce and sell at a price. Price (Baht) Koki's quantity Supplied 11 10 Market's quantity Supplied 8 6 2.5 c. Based on the answers in b., find the equilibrium price and equilibrium quantity in the market and how much profits(losses) does Koki make at equilibrium? d. In long run, what will be the market price and market quantity?arrow_forwardUse the data below to answer the questions: A. Calculate total revenue at X. B. Calculate marginal revenue at Y. C. Calculate marginal cost at Z.arrow_forwardPlease follow instructions and follow graph. Show workarrow_forward
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