Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 16, Problem 5IAPA
To determine
To calculate:
The profit maximizing price, output, and economic profit if the circus company charges a single price for all kind of tickets.
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Students have asked these similar questions
The figure below shows the demand and costs facing Mike's Bikes, a producer of
mountain bikes. What quantity does the firm produce and what is its price? Calculate
the firm's economic profit or economic loss.
Price and cost (dollars per bike)
400
350
300
250
200
150
100
50
MC
ATC
MR
100
200
Quantity (mountain bikes per week)
Quantity produced is 100 mountain bikes per week, price of a mountain bike is
$200 per bike, and economic loss is $10,000.
Quantity produced is 100 mountain bikes per week, price of a mountain bike is
$250 per bike, and economic loss is $5,000.
Quantity produced is 100 mountain bikes per week, price of a mountain bike is
$200 per bike, and economic profit is $5,000.
Quantity produced is 100 mountain bikes per week, price of a mountain bike is
$250 per bike, and economic profit is $5,000.
Price
(dollars
ticket)
20
Quantity
Total cost
(dollars per
Big Top is the only circus in the nation. The table
sets out the demand schedule for circus tickets
and the cost schedule for producing the circus.
(tickets
per show)
show)
0
1,000
a.
18
100
1,600
Calculate Big Top's profit-maximizing price,
output, and economic profit if it charges a
single price for all tickets.
16
200
2,200
14
300
2,800
12
400
3,400
10
500
4,000
8
600
4,600
6
700
5,200
Big Top's total revenue and marginal revenue
schedules are in the second table (see above
table), which is useful to answer these
questions. Big Top's marginal cost is constant
and equal to $6 per ticket. Big Top's marginal
revenue equals its marginal cost when the
quantity of tickets is 350 tickets per show and the price is $13 per ticket. The total revenue is 350 tickets x
$13, which is $4,550. The total cost of 350 tickets is $3,100. So the economic profit equals $4,550 -
$3,100, which is $1, 450. You are constructing a table with total…
Help me
Chapter 16 Solutions
Foundations of Economics (8th Edition)
Ch. 16 - Prob. 1SPPACh. 16 - Prob. 2SPPACh. 16 - Prob. 3SPPACh. 16 - Prob. 4SPPACh. 16 - Prob. 5SPPACh. 16 - Prob. 6SPPACh. 16 - Prob. 7SPPACh. 16 - Prob. 8SPPACh. 16 - Prob. 9SPPACh. 16 - Prob. 10SPPA
Ch. 16 - Prob. 11SPPACh. 16 - Prob. 1IAPACh. 16 - Prob. 2IAPACh. 16 - Prob. 3IAPACh. 16 - Prob. 4IAPACh. 16 - Prob. 5IAPACh. 16 - Prob. 6IAPACh. 16 - Prob. 7IAPACh. 16 - Prob. 8IAPACh. 16 - Prob. 9IAPACh. 16 - Prob. 10IAPACh. 16 - Prob. 1MCQCh. 16 - Prob. 2MCQCh. 16 - Prob. 3MCQCh. 16 - Prob. 4MCQCh. 16 - Prob. 5MCQCh. 16 - Prob. 6MCQCh. 16 - Prob. 7MCQ
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