Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971493
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 14, 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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Output
Average Cost( at that output level)
Marginal Cost of that Car
9,999
$ 12,000
10,000
$ 14,000
$ 11,500
19,999
?
$ 12,500
20,000
?
$ 12,600
Will the Average Cost of 20,000 cars be greater than the Average Cost of 19,999 cars, less than the Average Cost of 19,999 cars, or can you not tell
with the information given? ( Hint: it might help to draw a graph of AC and MC, and see if you can place units 19,999 and 20,000 on that graph).
O Greater Than
Less Than
O Can't Tell with the information given
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?
"The Hickory Cabinet and Furniture Company makes chairs. The fixed cost per month of making chairs is $7,500, and the variable cost per chair is $40. Price is related to demand, according to the following linear equation: v = 400 - 1.2p Graphically illustrate the profit curve developed . Indicate the optimal price and the maximum profit per month.
Chapter 14 Solutions
Principles of Microeconomics (MindTap Course List)
Ch. 14.1 - Prob. 1QQCh. 14.2 - How does a competitive firm determine its...Ch. 14.3 - Prob. 3QQCh. 14 - Prob. 1CQQCh. 14 - Prob. 2CQQCh. 14 - Prob. 3CQQCh. 14 - Prob. 4CQQCh. 14 - Prob. 5CQQCh. 14 - Prob. 6CQQCh. 14 - Prob. 1QR
Ch. 14 - Prob. 2QRCh. 14 - Prob. 3QRCh. 14 - Prob. 4QRCh. 14 - Prob. 5QRCh. 14 - Prob. 6QRCh. 14 - Prob. 7QRCh. 14 - Prob. 8QRCh. 14 - Prob. 1PACh. 14 - Prob. 2PACh. 14 - Prob. 3PACh. 14 - Prob. 4PACh. 14 - Prob. 5PACh. 14 - A firm in a competitive market receives 500 in...Ch. 14 - Prob. 7PACh. 14 - Prob. 8PACh. 14 - Prob. 9PACh. 14 - Prob. 10PACh. 14 - Suppose that each firm in a competitive industry...
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