ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337408059
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 15, Problem 8P
To determine
Whether the economy growing more or less competitive and the ways to explain this trend.
Concept Introduction:
According to Shepherd, there were three sources that explained the increasing trend in the competitiveness of the U.S. Economy. They were:
1. Competition from Imports;
2. Deregulation; and
3. Antitrust Activity
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1
Microeconomics
The table below represents a firm's profit for producing and selling candles. Assume that if a firm would have the same profit at two different levels of output, then the firm would choose the greater level of output. Assume that the only levels of output that the firm can produce are the levels of output given in the table. At what level of output does the firm maximize profits?
Quantity
Total Cost
Marginal Cost
Total Revenue
Marginal Revenue
0
$20
-
$0
-
15
$60
$2.67
$75
$5
30
$110
$3.33
$150
$5
45
$170
$4.00
$225
$5
60
$245
$5.00
$300
$5
75
$340
$6.33
$375
$5
#1
can you explain what the correct answer is and why?
Chapter 15 Solutions
ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
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