Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
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Question
Chapter 12, Problem 6SPA
To determine
What is the market price and the economic profit or loss of the firm in a short run.
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Students have asked these similar questions
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
A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $200.
What is its profit? What is its marginal cost? What is its average variable cost?
You are given the following information for a producer of organic grommets in a perfectly competitive market.
TFC = $7 Market price = $16
Quantity
MC ($)
11
9
10
4
12
15
6
19
The marginal cost of production appears in the table above. What is the profit-maximizing output? Is the firm making a profit or loss?
How much?
Output:
|(Click to select) v$
Chapter 12 Solutions
Microeconomics (13th Edition)
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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