1) For the following firm in a competitive market, COSTS Quantity Produced Total Cost Marginal Cost REVENUES Quantity Demanded Total Marginal Revenue Price Revenue $O |$50 $102 $157 $217 $285 $365 |$465 |$585 $80 $80 $80 $80 $80 $80 1 1 2 3 3 |4 5 $80 $80 $80 6. 7 8 7 8. a) Fill the column for marginal cost, total revenue and marginal revenue. b) What is interesting about the numbers you find for marginal revenue. c) Based on profit maximization rule that you learned in Chapter 14 for competitive firms, what is the profit maximizing output? Explain how you found your answer. 2) For the following firm in a competitive market, a) What is the profit maximizing quantity (approximately) when the market price is 8? How did you find it? b) What will this firm do if the price falls to $5 in short run and long run? 1Price 13 12 11 10 MC 9 + ATC 8 AVC
1) For the following firm in a competitive market, COSTS Quantity Produced Total Cost Marginal Cost REVENUES Quantity Demanded Total Marginal Revenue Price Revenue $O |$50 $102 $157 $217 $285 $365 |$465 |$585 $80 $80 $80 $80 $80 $80 1 1 2 3 3 |4 5 $80 $80 $80 6. 7 8 7 8. a) Fill the column for marginal cost, total revenue and marginal revenue. b) What is interesting about the numbers you find for marginal revenue. c) Based on profit maximization rule that you learned in Chapter 14 for competitive firms, what is the profit maximizing output? Explain how you found your answer. 2) For the following firm in a competitive market, a) What is the profit maximizing quantity (approximately) when the market price is 8? How did you find it? b) What will this firm do if the price falls to $5 in short run and long run? 1Price 13 12 11 10 MC 9 + ATC 8 AVC
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter9: Monopoly
Section: Chapter Questions
Problem 31P: Return to Figure 9.2. Suppose P0 is 10 and P1 is 11. Suppose a new firm with the same LRAC curve as...
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If all parts could be explained it'd be appreciated. I'm especailly confused on 1 part C & question 2 Part A.
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