Essentials of Economics (MindTap Course List)
8th Edition
ISBN: 9781337091992
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 13, Problem 3PA
Subpart (a):
To determine
Profit maximization.
Subpart (b):
To determine
Profit maximization.
Subpart (c):
To determine
Profit in the long run.
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Students have asked these similar questions
The diagram displays short-run cost curves for a facility that produces liquid crystal display (LCD) screens for cell phones:
a) What are the daily total fixed costs of producing LCD screens?b) What are the total variable costs of producing 100 LCD screens per day?c) What are the total costs of producing 100 LCD screens per day?d) What is the marginal cost of producing 100 LCD screens instead of 99? (Hint: To answer this question, you must first determine the total costs-or, alternatively, the total variable costs of producing 99 LCD screens.)
Use the graphical illustration to answer the following questions: (if required, use the discreet number of barrels)
1. At what production level would the marginal cost exceed the average cost? 2. How many barrels of natural-organic oil reflect the lowest minimum average variable cost?3. How much is the fixed cost to produce the natural-organic oil?
Question 4
Use the following table for the (i),(ii) and (iii) questions.
Quantity
Total fixed cost
Total variable cost
0
$800
$0
1
$800
$50
2
$800
$100
3
$800
$150
4
$800
$200
(i) What is the marginal cost of the third unit?
A: $0
B: $50
C: $150
D: $250
(ii) What is the average total cost at the quantity of 4?
A: $100
B: $150
C: $200
D: $250
(iii) From the information in the table above, is the marginal product diminishing?
A: Yes, because the total cost is increasing as the quantity increases.
B: Yes, because the total variable cost is increasing as the quantity increases.
C: No, because the marginal cost is not increasing as quantity increases.
D: No, because the total fixed cost is not increasing as quantity increases.
Chapter 13 Solutions
Essentials of Economics (MindTap Course List)
Ch. 13.1 - Prob. 1QQCh. 13.2 - How does a competitive firm determine its...Ch. 13.3 - Prob. 3QQCh. 13 - Prob. 1CQQCh. 13 - Prob. 2CQQCh. 13 - Prob. 3CQQCh. 13 - Prob. 4CQQCh. 13 - Prob. 5CQQCh. 13 - Prob. 6CQQCh. 13 - Prob. 1QR
Ch. 13 - Prob. 2QRCh. 13 - Prob. 3QRCh. 13 - Prob. 4QRCh. 13 - Prob. 5QRCh. 13 - Prob. 6QRCh. 13 - Prob. 7QRCh. 13 - Prob. 8QRCh. 13 - Prob. 1PACh. 13 - Prob. 2PACh. 13 - Prob. 3PACh. 13 - Prob. 4PACh. 13 - Prob. 5PACh. 13 - A firm in a competitive market receives 500 in...Ch. 13 - Prob. 7PACh. 13 - Prob. 8PACh. 13 - Prob. 9PACh. 13 - Prob. 10PACh. 13 - Suppose that each firm in a competitive industry...
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