Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 8, Problem 1SQ
To determine
The profit of the firm at price OB.
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Suppose a perfectly competitive firm is operating in short run. The information of MR, Q, ATC and AVC are 25 taka, 60 unit, 35taka and 15taka respectively. Calculate firm’s profit/loss and total fixed cost. From these calculations and based on all the given information, can you conclude about the firm’s decision in short run? Explain your reasoning with the help of a suitable diagram. Show all the relevant information in your diagram.[Q=profit maximizing output and MR=marginal revenue].
Don,t copy from anywhere. Answer must be correct. Do step by step
Please do a,b,c,d,e
A firm in a perfectly competitive industry knows the following about its costs and revenue. The firm would like to maximize
profit and has hired a consultant for advice.
Price
Q of Output
Total Revenue
Total Cost
Total Fixed Cost
10
500
TR?
9,400
TFC ?
Total Variable Cost
Average Total Cost
Average Variable Cost
MC
6,500
is at minimum level
AVC?
MC?
Total Revenue Number
Total Fixed Cost Number
Average Variable Cost Number
Marginal Cost Number
What is the value of the profit or loss (-) at the current output ( include the - sign if it's a loss) Number
Consultant's Advice: As a consultant, what advice would you give to this firm:(Choose ONE answer from the
following)
Number
1. Firm should do nothing; it is already profit maximizing/loss minimizing
2. Firm should reduce quantity of output
3. Firm should increase quantity of output
4. Firm should shutdown operations
5. The given number set is inconsistent
Chapter 8 Solutions
Economics For Today
Ch. 8.5 - Prob. 1YTECh. 8.5 - Prob. 2YTECh. 8 - Prob. 1SQPCh. 8 - Prob. 2SQPCh. 8 - Prob. 3SQPCh. 8 - Prob. 4SQPCh. 8 - Prob. 5SQPCh. 8 - Prob. 6SQPCh. 8 - Prob. 7SQPCh. 8 - Prob. 8SQP
Ch. 8 - Prob. 9SQPCh. 8 - Prob. 10SQPCh. 8 - Prob. 11SQPCh. 8 - Prob. 12SQPCh. 8 - Prob. 1SQCh. 8 - Prob. 2SQCh. 8 - Prob. 3SQCh. 8 - Prob. 4SQCh. 8 - Prob. 5SQCh. 8 - Prob. 6SQCh. 8 - Prob. 7SQCh. 8 - Prob. 8SQCh. 8 - Prob. 9SQCh. 8 - Prob. 10SQCh. 8 - Prob. 11SQCh. 8 - Prob. 12SQCh. 8 - Prob. 13SQCh. 8 - Prob. 14SQCh. 8 - Prob. 15SQCh. 8 - Prob. 16SQCh. 8 - Prob. 17SQCh. 8 - Prob. 18SQCh. 8 - Prob. 19SQCh. 8 - Prob. 20SQ
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Similar questions
- Answer the next question on the basis of the following cost data: Output Total cost 1 40 2 54 87 4 124 190 13) Refer to the above data. Given a price of $33, the profit-maximizing level of output for this firm: a. is 3. b. is 4. c. is 5. d. cannot be determined from the information given. 3.arrow_forwardNot image upload answer please.arrow_forward0 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.arrow_forward
- 6.10 d,e please explainarrow_forwarda) What is the averge total cost at which this firm reaches its break even point b) what is the average variable cost at which this firm reaches it shut down point?arrow_forwardA profit-maximizing firm decides to shut-down production in the short-run. Its total fixed cost of production is $100, i.e. TFC = $100. Which of the following statements is true? a If the firm produced, the firm's revenues would have been lower than $100. bIf the firm produced, the firm's total variable cost must be lower than $100. cIf the firm produced, the firm's losses would have been higher than $100. dIf the firm produced, the firm's total variable cost would have been higher than $100.arrow_forward
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