Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 8, Problem 15SQ
To determine
The profit-maximizing level of output of a firm.
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Students have asked these similar questions
In the short run, the firm should
You've been hired by Goldilocks Bakeshop to calculate measures of costs and revenue.
Given the data they have provided you with (see table), you are asked to compute the following:
a. Total Revenue (TR) at each Quantity (Q) level
b. Marginal Revenue (MR)
c. Marginal Cost (MC)
d. Profit at every quantity level
Quantity
Price Total cost
Total
Marginal Marginal cost
Profit
revenue
revenue
10
5
12
3
15
5
19
5
24
30
7
45
5.
5)
5)
solve the following:
d. what is the marginal cost when the firm increases the output from 5 to 6?
e. the economic profit is maximized at output equal to?
Chapter 8 Solutions
Micro Economics For Today
Ch. 8.5 - Prob. 1YTECh. 8.5 - Prob. 2YTECh. 8 - Prob. 1SQPCh. 8 - Prob. 2SQPCh. 8 - Prob. 3SQPCh. 8 - Prob. 4SQPCh. 8 - Prob. 5SQPCh. 8 - Prob. 6SQPCh. 8 - Prob. 7SQPCh. 8 - Prob. 8SQP
Ch. 8 - Prob. 9SQPCh. 8 - Prob. 10SQPCh. 8 - Prob. 11SQPCh. 8 - Prob. 12SQPCh. 8 - Prob. 1SQCh. 8 - Prob. 2SQCh. 8 - Prob. 3SQCh. 8 - Prob. 4SQCh. 8 - Prob. 5SQCh. 8 - Prob. 6SQCh. 8 - Prob. 7SQCh. 8 - Prob. 8SQCh. 8 - Prob. 9SQCh. 8 - Prob. 10SQCh. 8 - Prob. 11SQCh. 8 - Prob. 12SQCh. 8 - Prob. 13SQCh. 8 - Prob. 14SQCh. 8 - Prob. 15SQCh. 8 - Prob. 16SQCh. 8 - Prob. 17SQCh. 8 - Prob. 18SQCh. 8 - Prob. 19SQCh. 8 - Prob. 20SQ
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Similar questions
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- At what point would a competitive firm shut down in the short run?arrow_forward. A perfectly competitive, profit maximizing firm earns zero economic profit in the long run. The firm's total cost is: TC = a + bQ?. Use only the cost curve given. a. Determine mathematically the level of output the firm will produce in the long run.arrow_forwardPrice MC ATC IC MR Quantity a. What area(s) of the graph represent(s) total revenue for this firm if it was profit maximizing? b. What area(s) of the graph represent(s) total cost for this firm if it was profit maximizing? c. What area(s) of the graph represent(s) profits for this firm if it was profit maximizing? d. What area(s) of the graph represent(s) deadweight loss if the firm was profit maximizing?arrow_forward
- Explain why a firm carries on production in short run even if it makes negative profit. Use well labeled diagrams to support your explanation.arrow_forwardA firm produces a product in a competitive industry and has a total cost function (TC) of TC(q) = 90 + 10q + 2q² and a marginal cost function (MC) of MC(q) = 10 + 4q. At the given market price (P) of $16, the firm is producing 1.50 units of output. Is the firm maximizing profit?arrow_forwardGraph using MC and MR curves for a firm operating in a short-run perfect competition market to make an "excessive profit".arrow_forward
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