Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134643175
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Question
Chapter 8, Problem 5E
(a)
To determine
Identify the output level produced by the firm.
(b)
To determine
Identify the value of
(c)
To determine
Identify the profit in the short run.
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Students have asked these similar questions
Assume a competitive firm faces a market price of $100, a cost curve of:
C = 0.25q + 50q + 1,600
and a marginal cost curve of:
MC = 0.50g + 50.
The firm's profit maximizing output level is 100.00 units, the profit per unit is $9.00, and total profit is: $900.00.
However, if the firm wanted to maximize the profit per unit, how much would it produce?
It would produce
units. (round your answer to two decimal places)
If the firm produced this output level, what would be the profit?
Its profit would be S. (round your answer to the nearest penny)
Suppose that a competitive firm's marginal cost of producing output q (MC) is given by
Assume that the market price (P) of the firm's product is $15.
What level of output (q) will the firm produce?
The firm will produce units of output. (Enter your response rounded to two decimal places.)
What is the firm's producer surplus?
Producer surplus (PS) is $ (Enter your response rounded to two decimal places.)
Suppose that the average variable cost of the firm (AVC) is given by
MC(q)=3+2q.
AVC(q)=3+1q.
Suppose that the firm's fixed costs (FC) are known to be $50. Will the firm be eaming a positive, negative, or zero profit in the short run?
In the short run, the firm's profit will be positive
Enter your answer in each of the answer boxes.
Beta Industries manufactures floppy disks that consumers perceive as identical to those produced by
numerous other manufacturers. Recently, Beta hired an econometrician to estimate its cost function for
producing boxes of one dozen floppy disks. The estimated cost function is C = 20 + 2Q².
a. What are the firm's fixed costs?
b. What is the firm's marginal cost?
Now suppose other firms in the market sell the product at a price of $10
c. How much should this firm charge for the product?
d. What is the optimal level of output to maximize profits?
e. How much profit will be earned?
f. In the long run, should this firm continue to operate or shut down? Why?
Chapter 8 Solutions
Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (9th Edition) (Pearson Series in Economics)
Ch. 8 - Prob. 1RQCh. 8 - Prob. 2RQCh. 8 - Prob. 3RQCh. 8 - Prob. 4RQCh. 8 - Prob. 5RQCh. 8 - Prob. 6RQCh. 8 - Prob. 7RQCh. 8 - Prob. 8RQCh. 8 - Prob. 9RQCh. 8 - Prob. 10RQ
Ch. 8 - Prob. 11RQCh. 8 - Prob. 12RQCh. 8 - Prob. 13RQCh. 8 - Prob. 14RQCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Suppose you are the manager of a watchmaking firm...Ch. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - A sales tax of 1 per unit of output is placed on a...Ch. 8 - Prob. 15E
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