Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 8, Problem 40P
The total variable costs are
Expert Solution & Answer
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Students have asked these similar questions
Table A
Unit
Marginal
Cost
Marginal
Revenue
Quantity
12
$5.00
$9.00
13
$6.00
$9.00
14
$7.00
$9.00
15
$8.00
$9.00
16
$9.00
$9.00
17
$10.00
$9.00
This table describes the relationship between output, marginal revenue, and marginal cost. If the firm is
currently producing 14 units, what would you advise them to do?
decrease quantity to 13
) increase quantity to 15
remain at 14 units
increase quantity to 16 units
Typed plz and asap please provide a high quality solution give all steps as well as calculations and take care of plagiarism also
1) Given the following cost and revenue schedule, find the profit-maximizing quantity. Calculate total profits,
average cost and average revenue..
Quantity
0
10
20
30
40
50
60
70
Total Cost
400
500
625
775
950
1150
1375
1625
Total Revenue
0
600
900
1150
1350
1500
1600
1650
2) Plot the total revenue curve, total cost curve.
3) Given the cost and revenue schedule above, find the profit-maximizing quantity. Calculate the marginal cost and
marginal revenue."
4) Plot the marginal cost curve and marginal cost curve. Apply the profit maximizing rule in the short-run. (
Chapter 8 Solutions
Principles of Economics 2e
Ch. 8 - Firms ill a perfectly competitive market are said...Ch. 8 - Would independent trucking fit the characteristics...Ch. 8 - Look at Table 8.13. What would happen to the films...Ch. 8 - Suppose that the market price increases to 6, as...Ch. 8 - Explain in words why a profit-maximizing film will...Ch. 8 - A firms marginal cost curve above the average...Ch. 8 - If new technology in a perfectly competitive...Ch. 8 - A market in perfect competition is in long-run...Ch. 8 - Productive efficiency and allocative efficiency...Ch. 8 - Explain how the profit-maximizing rule of setting...
Ch. 8 - A single firm in a perfectly competitive market is...Ch. 8 - What are the four basic assumptions of perfect...Ch. 8 - What is a price taker firm?Ch. 8 - How does a perfectly competitive firm decide what...Ch. 8 - What prevents a perfectly competitive firm from...Ch. 8 - How does a perfectly competitive film calculate...Ch. 8 - Briefly explain the reason for the shape of a...Ch. 8 - What two rules does a perfectly competitive firm...Ch. 8 - How does the average cost curve help to show...Ch. 8 - What two lines on a cost curve diagram intersect...Ch. 8 - Should a firm shut down immediately if it is...Ch. 8 - How does the average variable cost curve help a...Ch. 8 - What two lines on a cost curve diagram intersect...Ch. 8 - Why does entry occur?Ch. 8 - Why does exit occur?Ch. 8 - Do entry and exit occur in the short run, the long...Ch. 8 - What price will a perfectly competitive firm end...Ch. 8 - Will a perfectly competitive market display...Ch. 8 - Will a perfectly competitive market display...Ch. 8 - Finding a life partner is a complicated process...Ch. 8 - Can you name five examples of perfectly...Ch. 8 - Your company operates in a perfectly competitive...Ch. 8 - Since a perfectly competitive firm can sell as...Ch. 8 - Many films in the United States file for...Ch. 8 - Why will profits for films in a perfectly...Ch. 8 - Why will losses for firms in a perfectly...Ch. 8 - Assuming that the market for cigarettes is in...Ch. 8 - In the argument for why perfect competition is...Ch. 8 - The AAA Aquarium Co. sells aquariums for 20 each....Ch. 8 - Perfectly competitive firm Doggies Paradise Inc....Ch. 8 - A computer company produces affordable,...
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Similar questions
- The AAA Aquarium Co. sells aquariums for 20 each. Fixed costs of production are 20. The total variable costs are 20 for one aquarium, 25 for two units, 35 for the three units, 50 for four units, and 80 for five units. In the form of a table, calculate total revenue, marginal revenue, total cost, and marginal cost for each output level (one to five units). What is the Profit-maximizing quantity of output? On one diagram, sketch the total revenue and total cost curves. On another diagram, sketch the marginal revenue and marginal cost curves.arrow_forwardWhat two lines on a cost curve diagram intersect at the shutdown point?arrow_forwardTotal Revenue Total C ost Proit/Loss/ Price( P) Quantity (TR) (TC) Break Even $3 5. 2 9. 3 8. 4 11 5. 15 6. 21 30 8. 42 6. 60 10 85 Yummy Cupcakes is a purely competitive firm. The firm's costs are shown in the table above. The market price is $5 (USE THIS TO FILL IN THE PRICE COLUMN) When Yummy Cupcakes produces 1 cupcakel Q-1).the firm : O breaks even incurs a loss O earns profits will shutdownarrow_forward
- I need the answer as soon as possiblearrow_forward36 Total Total Average Average Output Fixed Variable Total Variable Total Marginal (Q) Cost Cost Cost Cost Cost Cost I of 150 $500 $400 $900 $2.67 200 $500 $800 $1,300 $6.50 The table above shows costs for a firm. When Output (Q) changes from 150 to 200, Marginal Cost (MC) is equal to: Select one: a. $400 b. $8.00 c. $4.00 d. $5.00arrow_forward9. Problems and Applications Q10 An industry currently has 100 firms, each of which has fixed costs of $15 and average variable costs as follows: Complete the following table by deriving the total cost, marginal cost, and average total cost for each quantity from 1 to 6. Average Variable Cost Quantity (Dollars) Average Total Cost (Dollars) 1 2 10 12 The equilibrium price is Jurrently $20. Each firm produces Total Cost Marginal Cost (Dollars) (Dollars) 15 units. units, so the total quantity supplied in the market is In the long run, firms can enter and exit the market, and all entrants have the same costs as in the previous table. As this market makes the transition to its long-run equilibrium, the price will firm will quantity demanded will , and the quantity supplied by each.arrow_forward
- Answer the question on the basis of the following demand and cost data for a specific firm. Demand Data Cost Data (1) Price (2) Price (3) Quantity Output Total Cost $ 10.50 $ 10.00 6 6 $ 61 10.00 8.85 7 7 62 9.50 8.00 8 8 64 9.00 7.00 9 9 67 8.50 6.10 10 10 72 8.00 5.00 11 11 79 7.50 4.15 12 12 86 Suppose that entry into the industry changes this firm's demand schedule from columns (1) and (3) to columns (2) and (3). Economic profit will Multiple Choice fall to $4. decline to zero. increase by $6. fall by $8.arrow_forwardA firm has fixed costs of $40 and variable costs as indicated in the table below. For each level of output (total product) calculate total cost, average fixed cost, average variable cost, average total cost and marginal cost. Write your response in the table provided. b) Discuss why a firm in perfect competition will not charge a price above or below the market price.arrow_forwardNo written by hand solutionarrow_forward
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