EBK ECONOMICS: PRINCIPLES AND POLICY
13th Edition
ISBN: 8220100605932
Author: Blinder
Publisher: Cengage Learning US
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Question
Chapter 8, Problem 4TY
To determine
The profit refused by the firm.
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Students have asked these similar questions
A competitive firm is maximizing its profit by selling 150 units of output. The firm’s marginal cost is $8 and its average total cost is $6. The firm’s profit amounts to what?
p= 130 - 2Q.
The firm's cost curve is
C(Q) = 20 + 6Q.
What is the profit-maximizing solution?
The profit-maximizing quantity is O. (Round your answer to two decimal places.)
The profit-maximizing price is $. (round your answer to two decimal places.)
What is the firm's economic profit?
The firm earns a profit of $]. (round your answer to two decimal places.)
How does your answer change if C(Q) = 100 + 6Q? The increase in fixed cost
O A. causes the firm to increase both the price and quantity, and profit increases.
O B. has no effect on the equilibrium price and quantity, but profit will decrease.
OC. has no effect on the equilibrium quantity, but the equilibrium price increases and profit increases.
OD. has no effect on the equilibrium quantity, but the equilibrium price increases and profit decreases.
Should a company produce more goods when marginal revenue is greater than marginal costs? Explain.
Chapter 8 Solutions
EBK ECONOMICS: PRINCIPLES AND POLICY
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Similar questions
- What would be the profit earned by the firm if his total revenue is $490 and the total costs are $500arrow_forwardCalculate the marginal profit when marginal revenue is $84,000 and marginal cost is $77,000arrow_forwardSuppose a firm is able to sell their product for a price of $3. You have the following information on the firm's output and cost. Output Implicit Costs Explicit Costs 700 $70 $100 Instructions: Enter amounts as a whole number. If the firm is earning a loss indicate with a negative sign (-). What is the firm's economic profit? $arrow_forward
- Draw the cost curves for a typical firm. For a given price, explain how the firm chooses the level of output that maximizes profit. At that level of output, show on your graph the total revenue of the firm. Show its total costs.arrow_forwardIf the marginal revenue is 45 and the marginal cost is 45 also. What can you say about the firm's profit? Should they produce more?arrow_forwardmc mrarrow_forward
- If marginal revenue is $30 and marginal cost is $15 Calculate marginal profitarrow_forwardIf a firm is producing at a quantity in which the marginal cost exceeds marginal revenue, the firm must decrease output to increase profit must increase output to increase profit is maximizing profit O must shut-down to increase profitarrow_forwardMarginal revenue and marginal cost are $850 and $700 respectively Calculate the value of Marginal profitarrow_forward
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