a) At what output is the firm’s profit maximised and  How much profit is made at this output?    (b) Draw the total profit TΠ curve over the range of output where positive profit is made.   (d) How much is total fixed cost, At what output is the price elasticity of demand equal to -1 and  At what outputs does the firm break even?

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Firms In Competitive Markets
Section: Chapter Questions
Problem 6PA: A firm in a competitive market receives 500 in total revenue and has marginal revenue of 10. What is...
icon
Related questions
Question

 

(a) At what output is the firm’s profit maximised and  How much profit is made at this output? 

 

(b) Draw the total profit curve over the range of output where positive profit is made.

 

(d) How much is total fixed cost, At what output is the price elasticity of demand equal to -1 and  At what outputs does the firm break even?

9. There are two methods of showing the profit-maximising position for a firm. The first uses total
revenue and total cost curves.
The figure below shows the total cost and revenue curves for a firm on the same diagram.
TC
60
50
40
TR
30
20
10
10
20 30
40 50
60
70 80 90
Quantity
Costs and revenues (£)
Transcribed Image Text:9. There are two methods of showing the profit-maximising position for a firm. The first uses total revenue and total cost curves. The figure below shows the total cost and revenue curves for a firm on the same diagram. TC 60 50 40 TR 30 20 10 10 20 30 40 50 60 70 80 90 Quantity Costs and revenues (£)
Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Total Revenue and Total Cost
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
ECON MICRO
ECON MICRO
Economics
ISBN:
9781337000536
Author:
William A. McEachern
Publisher:
Cengage Learning
Economics:
Economics:
Economics
ISBN:
9781285859460
Author:
BOYES, William
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning