Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
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Chapter 14, Problem 13APA
(a)
To determine
Identify the entry of other firms into the singing lesson business of L.
(b)
To determine
Identify the changes in demand and economic profit of singing lesson business of L in the long run.
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The graph shows the situation facing Mike's Bikes Inc., a producer of mountain
bikes.
The demand and costs of other mountain bike producers are similar to those of
Mike's Bikes.
Draw a point to show the quantity of mountain bikes that Mike's produces and the
price of a bike.
Draw a shape to show the firm's economic profit or loss. Label it
400
350-
300-
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200-
150-
100
50-
0+
Price and cost (dollars per bike)
0
MC
ATC
MR
D
50 100 150 200 250 300
Quantity (mountain bikes per week)
>> Draw only the objects specified in the question.
Q
E
The situation facing by firm "Smart", a producer of running shoes, is shown in the
following figure.
100
MC
ATC
80
60
40
20
MR
50
100
150
200
Quantity (pairs of running shoes per week)
a. What quantity does Smart Shoes produce?
Answer:
b. What is the price of a pair of Smart shoes?
Answer:
c. What is Smart's economic profit or economic loss?
Answer:
Why MR curve is below to demand curve
Price and cost (dollars per pair)
8
Don't use chatgpt or any AI
A profit-maximising firm in a competitive market is currently producing 1,000
units of output. It has average revenue of $50, average total cost of $40 and fixed cost of $10,000.
a) What is its profit?
b) What is its marginal cost?
c) What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?
Chapter 14 Solutions
Microeconomics (13th Edition)
Ch. 14.1 - Prob. 1RQCh. 14.1 - Prob. 2RQCh. 14.1 - Prob. 3RQCh. 14.2 - Prob. 1RQCh. 14.2 - Prob. 2RQCh. 14.2 - Prob. 3RQCh. 14.2 - Prob. 4RQCh. 14.2 - Prob. 5RQCh. 14.3 - Prob. 1RQCh. 14.3 - Prob. 2RQ
Ch. 14.3 - Prob. 3RQCh. 14.3 - Prob. 4RQCh. 14.3 - Prob. 5RQCh. 14 - Prob. 1SPACh. 14 - Prob. 2SPACh. 14 - Prob. 3SPACh. 14 - a. Do you expect other firms to enter the Web...Ch. 14 - Prob. 5SPACh. 14 - Prob. 6SPACh. 14 - Prob. 7SPACh. 14 - Prob. 8SPACh. 14 - Prob. 9SPACh. 14 - Prob. 10APACh. 14 - Prob. 11APACh. 14 - Prob. 12APACh. 14 - Prob. 13APACh. 14 - Prob. 14APACh. 14 - Prob. 15APACh. 14 - Prob. 16APACh. 14 - Prob. 17APACh. 14 - Prob. 18APACh. 14 - Prob. 19APACh. 14 - Prob. 20APACh. 14 - Prob. 21APACh. 14 - Prob. 22APACh. 14 - Prob. 23APACh. 14 - Prob. 24APACh. 14 - Prob. 25APACh. 14 - Prob. 26APACh. 14 - Prob. 27APACh. 14 - Prob. 28APACh. 14 - Prob. 29APA
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