ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- Refer to the table below. How much profit would this firm make if it produces 2 units of goods? Q P TR MR TC MC 0 $30 0 - $15 - 1 $30 $30 $30 $25 $10 2 $30 $60 $30 $40 $15 3 $30 $90 $30 $60 $20 4 $30 $120 $30 $85 $25 5 $30 $150 $30 $115 $30 6 $30 $180 $30 $150 $35 Group of answer choices $20 $35 $30arrow_forwardRefer to the graph shown, which depicts a perfectly competitive firm that maximizes profit. If the prevailing market price is $4: Price 8765432-0 1 ง C MC ATC 0 20 40 60 80 100 120 Output per day Show Transcribed Text LRAC Group of answer choices Economic profits are $500 and the quantity supplied from the firm is 200 units per day. Economic profits are $0 and the quantity supplied from the firm is 100 units per day. Economic profits are $100 and the quantity supplied from the firm is 100 units per day. Economic profits are -$100 and the quantity supplied from the firm is 80 units per day.arrow_forwardThe accompanying graph depicts the Marginal Cost (MC), Average Total Cost (ATC), and Marginal Revenue (MR) curves for a perfectly (or purely) competitive firm. Move point A to identify the profit maximizing price and quantity for this firm. Price and Cost 20 19 18 17 16 DEHBEFOON OSION-O 15 14 13- 12 11 10 8 6 4 MR=D A Perfectly Competitive Firm A MC ATC 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantityarrow_forward
- Table 8.1 Q 0 1 2 3456 3 4 6 7 8 9 10 MC $30 20 30 40 50 60 70 80 90 100 ATC $230 125.00 93.33 80.00 74.00 71.67 71.43 72.50 74.44 77.00 AVC Produce an output of 5 and earn a negative economic profit Shutdown and produce nothing Produce an output of 5 and earn a positive economic profit Produce an output of 6 and earn a positive economic profit -11 $130 75.00 60.00 55.00 54.00 55.00 57.14 60.00 63.33 67.00 Refer to table 8.1. If the competitive market price for kale is $51, what will the firm do in the short-run?arrow_forwardAssume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. Output TC MC ATC 50,800 $170,000 $0.60 100,800 220,000 1.10 150,800 257,500 1.71 200,800 365,500 2.45 Instructions: Enter your answers rounded to two decimal places. a. What is ATC per unit for each level of output listed in the table? Enter your answers in the table above. b. Are there economies of scale in production? Yes c. Suppose that the market price for a bottle of vitamins is $1.71. At that price the total market quantity demanded is 301,600,000 bottles. How many firms will be in this industry? firm(s) d. Suppose that, instead, the market quantity demanded at a price of $1.71 is only 150,800. How many firms will be in this industry? firm(s) e. Review your answers to parts b, c, and d. Does the level of demand determine…arrow_forwardBased on the table, what is total revenue for John's Tricycle Company if it produces at its profit- maximizing output? Output Marginal Total Cost Revenue 7,500 5. 1,300 1,400 1,500 1,600 0006 10,500 7. 8. 000 13,500 O 10,500arrow_forward
- Using the table for a firm (NOTE: You should use the rule of profit maximization), Price (S) Q (Demand) TR 26 1 22 2 18 3 14 10 6 4 5 6 TC 26 34 44 56 70 86 MR ΝΑ MC ΝΑ 15. Complete the table. 16. Using the table, draw the demand curve, MR curve, and MC curve in one diagram. 17. Determine the output and price of the profit-maximizing firm. (NOTE: you should explicitly use MR, MC for profit-max condition.) 18. Why can the firm not charge higher than the price you choose in #17? 19. Determine the profit of the proft-maximizing firm. 20. Determine the profit of the proft-maximizing firm in the long run.arrow_forwardBased on the information in the table below, determine what quantity this firm should produce to maximize its profit. Quantity Marginal Cost Average Total Cost P=Marginal Revenue Total Cost 0 $ 100 1 $ 200 $ 300 $ 200 $ 300 2 $ 100 $ 200 $ 200 $ 400 3 $ 70 $ 157 $ 200 $ 470 4 $ 100 $ 143 $ 200 $ 570 5 $ 142 $ 142 $ 200 $ 712 6 $ 200 $ 152 $ 200 $ 912 7 $ 270 $ 169 $ 200 $ 1,182 8 $ 318 $ 188 $ 200 $ 1,500 Group of answer choicesarrow_forwardConsider the competitive firm in Figure 3-1. At the profit maximizing level of output, the firm is incurring Group of answer choices An economic loss of 150 A positive economic profit of $133 An economic loss of $133 Zero economic profitarrow_forward
- $150 $145 $140 MC $135 $130 $125 $120 $115 ATC $110 $105 $100 $95 $90 $85 $80 AVC $75 $70 $65 $60 $55 $50 $45 $40 $35 $30 $25 0 1 2 3 5 6 Quantity Produced 7 8 9 10 11 The graph above shows the cost functions for a perfectly competitive profit maximizing firm. If the market price of the product is $70 per unit, the firm will produce units, will cover make an economic profit of dollars. dollars of its fixed cost, and willarrow_forwardplease answer in text form and in proper format answer with must explanation , calculation for each part and steps clearlyarrow_forwardQuestioned uploaded in the attached jpg file.arrow_forward
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