Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 12, Problem 14APA
(a)
To determine
The
(b)
To determine
The equilibrium market quantity of a smoothie.
(c)
To determine
How many smoothies a firm can sell.
(d)
To determine
The economic profit or loss incurred by the firm.
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Students have asked these similar questions
Billy’s Bean Bag Emporium produced 300 bean bag chairs but sold only 275 of the units it produced. The average cost of production for each unit of output produced was $100. The price for each of the 275 units sold was $95. What is the Total profit for Billy’s Bean Bag Emporium? Include in your answer your calculation
The market for smoothies is perfectly competitive and the market demand schedule
is in the first two columns in the below table. Each of the 100 producers of
smoothies has the costs given in columns 3- 6 when it uses its least-cost plant. What
is the market price of a smoothie?
$5.25
$4.25
$2.91
$2.20
Market demand schedule
Quantity
demanded
(smoothies
per hour)
1,000
Price
(dollars per
smoothie)
1.90
2.00
2.20
2.91
4.25
5.25
5.50
950
800
700
550
400
300
Output
(smoothies
per hour)
3
4
5
6
7
8
9
Producers of smoothies Costs
Marginal cost
(dollars per
additional
smoothie)
2.50
2.20
1.90
2.00
2.91
4.25
8.00
Average
variable cost
(dollars per smoothie)
4.00
3.53
3.24
3.00
2.91
3.00
Average total
cost
3.33
7.33
6.03
5.24
4.67
4.34
4.25
4.44
Lisa lawn company (LLC) is a lawn mowing business in a perfectly competitive market for lawn moving services. The following tables set out Lisa's costs
Quantity(lawn per hour)
Total Cost(dollars per lawn)
0
$30
1
$40
2
$55
3
$75
4
$100
5
$130
6
$165
A. If the market price is $30 per lawn, How many lawns per hour does Lisa's LLC now?
B. If the market price is 30 per lawn, What is Lisa"s profit in the short run?
C. if the market price falls to $20 per lawn, how many lawns per hour does Lisa's LLC now?
D. if the market price falls to $20 per lawn, what is Lisa's profit in the short run?
E. At What market price will Lisa shut down?
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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