Complete the table below to answer questions 46. and 47.: Price Quantity Cost $18 16 14 12 10 8 642 012345678 Total Revenue Marginal Revenue Marginal $0 X $2.00 $16 $16 2.50 28 12 3.00 3.50 4.00 4.50 5.00 5.50 6.00 What is the profit-maximizing number of units to produce? What is the profit-maximizing price? 46 46. a. 2 b. 4 c. 6 d. 8 47. a. $14 b. $10 c. $6 d. $4

Price and cost (dollars) 50 40 .ATC 10 MC MR 10 Quantity (thousands of households) 20 30 40 50 The above figure represents the market for cable television in Oakland, Florida. Time Warner Communications (TWC) is the sole provider of cable television to the residents of this Central Florida community. If TWC is left unregulated, what is the price of cable television in Oakland? $20 $30 $10 $40 30 20

Move the cursor to draw the marginal revenue curve using the information in the following table. Quantity Produced 0 1 2 3 4 5 6 80 70 60 50 400 30 20 10 07 Price ($) 80 75 70 65 60 55 50 2 Total Revenue ($) 0 75 140 195 240 275 300 Marginal Revenue ($) 3 4 Quantity Produced 5 6

Co Assignment Content 1) When the Price is $4 the quantity supplied of hats is 100. If the price changes to $6 dollars and the quantity supplied changes to 400, is the elasticity of supply elastic, inelastic or unit elastic? How did you reach that conclusion? 2) Why will economic profits for firms in a perfectly competitive industry tend to vanish in the long run? What about accounting AS 12

1. Price and output in a competitive price-searcher market Consider a price-searching firm, Sean's Fire Engines, which sells fire engines in the fictional country of Pyrotania. Initially, Sean's produced six fire engines but then decided to increase production to seven fire engines. The following graph shows the demand curve the firm faces. To sell the additional engine, Sean's must lower its price from $100,000 to $50,000 per engine. (Hint: Sean's Fire Engines gains revenue from the additional engine it sells, but it also loses revenue from the initial six engines because it sells them all at the lower price.) On the following graph, use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial six engines by selling at $50,000 rather than $100,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $50,000. re engine) 250 225 200 Q Search Revenue Lost Col

Complete the following table and identify the profit maximising and output. b. What is true about marginal revenue and marginal costs when profit is maximized. c. What would be the profit-maximizing level of output if price fell to $9?

2. The demand curve facing a competitive firm The following graph illustrates the market for small moving trucks in Bloomington, IN, during Indiana's fall move-in week. PRICE (Dollars per small truck) 100 90 Supply X 2 3 6 7 8 QUANTITY (Hundreds of small trucks) 80 70 60 50 40 30 20 10 0 Demand 0 1 4 5 9 10 ? Suppose that YouYeet is one of over a dozen competitive firms in the Bloomington area that offers moving truck rentals. Based on the preceding graph showing the weekly market demand and supply curves, the price You Yeet must take as given is $

Macmillan Learning Ⓒ The graph contains individual supply curves for the only two firms in a hypothetical market for stuffed animals. Place the market supply curve at the correct location on the graph. Then, consider what would happen to the market if a third supplier enters the market, holding all else constant. Price per Stuffed Animal ($) 10 Incorrect 8 7 6 5 4 3 2 11 0 0 Market for Stuffed Animals Firm 1 Market Firm 2 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Quantity of Stuffed Animals A third firm would mean market supply increases.

Pi ce CA Per pica) 75 55 30 MR Quast (paus pe 40 The figure above shows the cost curves of a profit-maximizing perfectly competitive firm. 8) What are the characteristics of a perfectively competitive market? 9) what is the equilibrium output and price? 10) calculate the producer and consumer surplus

Question 2 A university is planning to install many mini steel structures within the campus. Three companies have provided their quotation to get the job with below variable and fixed cost. For up to 20,000 units per year, determine what ranges of supply (annual supply) each quotation would be suitable.   Provide justification of your answer.   Quotation A: has annual variable cost $20 with annual fixed cost $100000   Quotation B: has annual variable cost $5 with annual fixed cost $200000   Don't ignore any part all part work u