Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 8, Problem 6SQ
To determine
The implication of the price of OD.
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Students have asked these similar questions
Mink farming is a perfectly competitive industry and all mink farms have the same cost curves.
When the market price is $38 a mink, farms maximize profit by producing 400 mink a week. At this output, average total
cost is $36 and average variable cost is $22 a mink. Minimum average variable cost is $17 a mink. If the price of a mink falls
to $17, the mink farmer will
A.produce the profit-maximizing output
B. shut down
C.continue to produce 400 mink a week
D.attempt to raise the price back to $38 a mink
E.either shut down or produce the profit-maximizing output
Mo owns a Coffee truck which operates in a perfectly competitive industry. He faces the following cost schedule (notice that his coffee maker makes ten cups at a time, and that he has a daily fixed cost of operating the truck). If the market price of a cup of coffee is $2.50, what Q would a profit-maximizer choose to produce? (Hint: compute MR and MC at each Q)
Q
TC
0
$30
10
$50
20
$63
30
$73
40
$78
50
$95
60
$120
Mo owns a Coffee truck which operates in a perfectly competitive industry. He faces the following cost schedule (notice that his coffee maker makes ten cups at a time, and that he has a daily fixed cost of operating the truck). If the market price of a cup of coffee is $2.50, what Q would a profit-maximizer choose to produce? (Hint: compute MR and MC at each Q)
Q
TC
0
$30
10
$50
20
$63
30
$73
40
$78
50
$95
60
$120
Select one:
a.
50
b.
40
c.
60
d.
30
e.
20
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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