Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 12, Problem 13APA
(a)
To determine
What is the profit maximizing output of the firm.
(b)
To determine
What is the economic profit of the firm.
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Students have asked these similar questions
Dave's Donuts sold 1,000 donuts. Total revenue was $400, and the cost of producing the 1,000 donuts was $300. What is the profit for Dave's Donuts?
$1,000
$500
$100
$400
The graph shows the costs of Quick Copy, one of the many copy shops near campus.
If the market price of copying is 10¢ a page, calculate Quick Copy's
a. Profit-maximizing output
b. Economic profit
Quick Copy's profit-maximizing output is
pages an hour.
Quick Copy's economic profit is $
an hour.
>>> Answer to 2 decimal places.
>>> Remember that the price given on the y-axis is in cents.
A Exercise (Structured Questions)
G bought goods on credit from lab x
deby
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cost, average fixed cost, long
marginal revenue is
Open with Google Docs
fit.
run average cost, total
3. Given information in the following table:
Quantity
Price (RM)
Total Cost
60
18
58
20
3.
54
24
48
30
5
40
38
28
50
14
70
b. Determine the quantity produced by the firm
c. How much does the firm earn in terms of profit"
d. What is the average cost of the firm?
e Sketch the AC, AR, MR and MC curve without a seale.
Chapter 12 Solutions
Macroeconomics
Ch. 12.1 - Prob. 1RQCh. 12.1 - Prob. 2RQCh. 12.1 - Prob. 3RQCh. 12.1 - Prob. 4RQCh. 12.2 - Prob. 1RQCh. 12.2 - Prob. 2RQCh. 12.2 - Prob. 3RQCh. 12.3 - Prob. 1RQCh. 12.3 - Prob. 2RQCh. 12.3 - Prob. 3RQ
Ch. 12.4 - Prob. 1RQCh. 12.4 - Prob. 2RQCh. 12.5 - Prob. 1RQCh. 12.5 - Prob. 2RQCh. 12.5 - Prob. 3RQCh. 12.6 - Prob. 1RQCh. 12.6 - Prob. 2RQCh. 12.6 - Prob. 3RQCh. 12.6 - Prob. 4RQCh. 12 - Prob. 1SPACh. 12 - Prob. 2SPACh. 12 - Prob. 3SPACh. 12 - Prob. 4SPACh. 12 - Prob. 5SPACh. 12 - Prob. 6SPACh. 12 - Prob. 7SPACh. 12 - Prob. 8SPACh. 12 - Prob. 9SPACh. 12 - Prob. 10APACh. 12 - Prob. 11APACh. 12 - Prob. 12APACh. 12 - Prob. 13APACh. 12 - Prob. 14APACh. 12 - Prob. 15APACh. 12 - Prob. 16APACh. 12 - Prob. 17APACh. 12 - Prob. 18APACh. 12 - Prob. 19APACh. 12 - Prob. 20APACh. 12 - Prob. 21APACh. 12 - Prob. 22APACh. 12 - Prob. 23APA
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- How do you calculate whether your business has an economic profit using marginal approach to profit maximization? and what does an economic profit means?arrow_forwardMarginal Revenue, Marginal Cost, Marginal Profit: MR=MC MC Marginal Profit 0 quantity (firm) 3:57 / 4:19 YouTube E} CC 74. In the video, when MC > MR, what action should the firm take to Maximize Profit. Select one: a. Increase Price b. Decrease Quantity c. Decrease Price d. Increase Quantity Check Costs & Revenuesarrow_forwardThe graph shows the market for Mickey's Mountain Bikes. 1. What is the profit-maximizing output per week and the price per bike? 2. At this level of output, what is the firm's average total cost, and the economic profit per week? 3. What can we conclude as a result of the economic profit?arrow_forward
- How much profit will it make at that lower price?arrow_forward18. What is the value of the total revenue? 19. What is the value of the marginal revenue? 20. What is the value of the average cost?arrow_forwardJYour business has the capacity to produce up to 5 units/week. The table & graph below show average cost (AC) for different weekly production levels. Your objective is to maximize profit each week. Average Cost 22 20 AC 18 1 20 14 2 15 12 3 12 10 1 2 4 4 13 Quantity 15 Your product sells in the market for $21/unit, and you can sell as many units at that price as you can bring to market. You know from your economics training that deciding how much to produce should rely on marginal concepts like marginal cost (MC). So, based on the AC table above, create a table that shows the MC of each unit. (Assume that there are no fixed costs, so total costs are zero if Q=0.) Based on MC for each unit, determine the profit-maximizing quantity to produce and sell. BRIEFLY explain your answer. (Your answer needs to be based on MC and being able to sell each unit for $21.) AC ($/unit)arrow_forward
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