For Parts (A) through (C) below, refer to the figure and table below. The figure below displays the short-run MC, AVC, and AC for a firm. The table displays the MC, AVC, and AC at specific levels of output for the same firm. 9 0 4 6 MC(q) AVC(q) 10 10 6 6 14 8 AC(q) 15 14 $ MC(q) q AC(q) B) If the price of the good is $15 (p = 15), select the statement below that is true: A. The firm's profit in the short-run will be negative (< 0) so they should shut-down. B. The firm's profit in the short-run will be negative (л < 0) but they should continue to operate. C. The firm's profit in the short-run will equal zero (π = 0). D. The firm's profit in the short-run will be positive (π > 0). E. There is not enough information to know whether the profit will be greater than, less than, or equal to zero. AVC (q) A) If the firm is going to produce a strictly positive level of output (q> 0) in the short-run, what is the lowest the price (p) could be?

For Parts (A) through (C) below, refer to the figure and table below. The figure below displays the short-run MC, AVC, and AC for a firm. The table displays the MC, AVC, and AC at specific levels of output for the same firm. 9 0 4 6 MC(q) AVC(q) 10 10 6 6 14 8 AC(q) 15 14 $ MC(q) q AC(q) B) If the price of the good is $15 (p = 15), select the statement below that is true: A. The firm's profit in the short-run will be negative (< 0) so they should shut-down. B. The firm's profit in the short-run will be negative (л < 0) but they should continue to operate. C. The firm's profit in the short-run will equal zero (π = 0). D. The firm's profit in the short-run will be positive (π > 0). E. There is not enough information to know whether the profit will be greater than, less than, or equal to zero. AVC (q) A) If the firm is going to produce a strictly positive level of output (q> 0) in the short-run, what is the lowest the price (p) could be?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Note:Hand written solution is not allowed.
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from Profit = 144X – 3X² – XY – 2Y² + 120Y – 35 to get the Marginal profit of X = d(Profit)/dX X = 144 - 6X - Y show the complete solution
please only solve part g!
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4. A vertically integrated automobile company has an upstream engine division and a downstream assembly division. The demand for the company's cars is given by Q = 20-P. Each car requires one engine. The downstream division's total cost of assembling cars is TCD(Q) = 4Q. The upstream division's total cost of producing engines is TCv (Q) = Q². (a) Suppose that there is no outside market for engines. What is the price and quantity of cars produced by the company? (b) Suppose that there is no outside market for engines. What should be the transfer price for engines? [Hint: the transfer price of an engine should equal the marginal cost of engine production at the optimal quantity.] (c) Suppose that there is a competitive outside market in which the price of an engine is 12. What is the price and quantity of cars produced by the company? (d) Suppose that there is a competitive outside market in which the price of an engine is 12. What is the quantity of engines that the company buys or…
Could you fully explain the part (C)? And please dont miss any details.
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