5. Consider the marginal revenue and marginal cost curves shown in Figure 7.13. Assume that the firm represented is able to cover its variable costs if it operates in the short run. What is the firm's optimal output level?a.150 unitsb.80 unitsc.50 unitsd.less than 50 unitse.between 50 and 80 unitsChoose and explain your answer above thoroughly--graphical, algebraically, numerically. es/31724/assignments/345172?module_item_id%3D1142393GGGGCoomFigure 7 -1390%Dollarsraryper Unitr OnlineMC165acementsnline TutoringMR5080150Units ofOutput5. Consider the marginal revenue and marginal cost curves shown in Figure 7.13. Assume that the firm represented is able tocover its variable costs if it operates in the short run. What is the firm's optimal output level?a. 150 unitsb. 80 unitsC. 50 unitsd. less than 50 unitse. between 50 and 80 unitsChoose and explain your answer above thoroughly--graphical, algebraically, numerically.

Consider the marginal revenue and marginal cost curves shown in Figure 7.13. Assume that the firm represented is able to cover its variable costs if it operates in the short run. What is the firm's optimal output level? a. 150 units b. 80 units c. 50 units d. less than 50 units e. between 50 and 80 units

Consider the marginal revenue and marginal cost curves shown in Figure 7.13. Assume that the firm represented is able to cover its variable costs if it operates in the short run. What is the firm's optimal output level? a. 150 units b. 80 units c. 50 units d. less than 50 units e. between 50 and 80 units

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 9SQP

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2AAWO AC I4 17.1 REVENUE, COST, AND PROFIT APPLICATIONSITSO RSYHAHD 797 20 A firm sells each unit of a product for $50. The total cost of producing x (thousand) units is described by the function C(x) = 10 – 2.5x² + x³ where C(x) is measured in thousands of dollars. (a) Use the marginal approach to determine the profit-maximizing level of output. (6) What is total revenue at this level of output? Total cost? Total profit? 1 The profit function for a firm is -000
a AD an ana 2 ATC AVC Q Per the above graph of cost curves, assume that the horizontal lines at P1, P2, P3 and P4 represent Demand MR Price which means the graph is of a firm producing products in a perfectly competitive market structure. If so, and the product price is P3, O the firm should exit the industry the firm will earn an economic profit. the firm is at breakeven earning normal profit which is an economic cost, but not earning any economic profit. new firms will enter the industry. Sim
ntQu102spring22 (1) - Protected View • Saved to this PC - O Search (Alt+Q) Faridatu Pafadnam References Mailings Review View Help t Defender Advanced Threat Protection and it hasn't detected any threats. If you need to edit this file, click enable editing, Enable Editing 3) Consider the following short-run cost curves for a profit-maximizing firm in a perfectly competitive industry. MC SRATC 4 SRAVC 1.5 1 100 200 300 400 Quantity FIGURE 1 a) Refer to Figure 1. If the current market price is $6, what is the profit-maximizing output for this firm? b) Refer to Figure 1. If the price is $6 and the firm is producing at its profit-maximizing output, then what are total costs for the firm? c) Refer to Figure 1. If the market price is $1, the firm will produce short run. units of output in the d) Refer to Figure 1. If the market price is $2, what the firm will do? Price $
Charlie Co. sells pastries and its production and cost table is given below. A workercosts $100 a day, the firm has fixed costs of $200.L Q MP MC TC ATC0 01 202 503 904 1205 1406 1507 155a. Complete the table above [7 marks]b. Compare the average total cost and the marginal cost and explain therelationship [3 marks]c. Describe the methods that can be used to determine where profit is maximized?[3 marks]
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