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A firm's costs are represented in the table below. Assume the firm is only able produce at the quantities listed in the table. Quantity TVC ($) MC ($) AVC ($) TC ($) ATC ($) - 1,000 10 500 50 50 1,500 150 20 900 40 45 1,900 95 30 1,700 80 57 2,700 90 40 4,400 270 110 5,400 135 50 8,000 360 160 9,000 180 60 14,000 600 233 15,000 250 a. If the market price of this good is $110, what is the firm's profit-maximizing quantity? 30 units. b. If the firm produces its profit-maximizing quantity, what is it's total revenue? $ c. What is the total amount of profit or loss? Include a negatve sign if the firm makes a loss. $ d. Suppose the price in the market remains $110, and all firms in the market have identical cost structures. What happens to the number of firms in the long-run equilibrium? decreases.

A firm's costs are represented in the table below. Assume the firm is only able produce at the quantities listed in the table. Quantity TVC ($) MC ($) AVC ($) TC ($) ATC ($) - 1,000 10 500 50 50 1,500 150 20 900 40 45 1,900 95 30 1,700 80 57 2,700 90 40 4,400 270 110 5,400 135 50 8,000 360 160 9,000 180 60 14,000 600 233 15,000 250 a. If the market price of this good is $110, what is the firm's profit-maximizing quantity? 30 units. b. If the firm produces its profit-maximizing quantity, what is it's total revenue? $ c. What is the total amount of profit or loss? Include a negatve sign if the firm makes a loss. $ d. Suppose the price in the market remains $110, and all firms in the market have identical cost structures. What happens to the number of firms in the long-run equilibrium? decreases.

Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
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A firm's costs are represented in the table below. Assume the firm is only able produce at the quantities listed in the table. тC ($) Quantity TVC ($) MC ($) AVC ($) АTC ($) 1,000 10 500 50 50 1,500 150 20 900 40 45 1,900 95 30 1,700 80 57 2,700 90 40 4,400 270 110 5,400 135 8,000 14,000 50 360 160 9,000 180 60 600 233 15,000 250 a. If the market price of this good is $110, what is the firm's profit-maximizing quantity? 30 units. b. If the firm produces its profit-maximizing quantity, what is it's total revenue? $ c. What is the total amount of profit or loss? Include a negatve sign if the firm makes a loss. $ d. Suppose the price in the market remains $110, and all firms in the market have identical cost structures. What happens to the number of firms in the long-run equilibrium? decreases. What happens to total market output and what happens to each firm's output in the long-run equilibrium? Total market output increases but each firm's output falls.
Transcribed Image Text:A firm's costs are represented in the table below. Assume the firm is only able produce at the quantities listed in the table. тC ($) Quantity TVC ($) MC ($) AVC ($) АTC ($) 1,000 10 500 50 50 1,500 150 20 900 40 45 1,900 95 30 1,700 80 57 2,700 90 40 4,400 270 110 5,400 135 8,000 14,000 50 360 160 9,000 180 60 600 233 15,000 250 a. If the market price of this good is $110, what is the firm's profit-maximizing quantity? 30 units. b. If the firm produces its profit-maximizing quantity, what is it's total revenue? $ c. What is the total amount of profit or loss? Include a negatve sign if the firm makes a loss. $ d. Suppose the price in the market remains $110, and all firms in the market have identical cost structures. What happens to the number of firms in the long-run equilibrium? decreases. What happens to total market output and what happens to each firm's output in the long-run equilibrium? Total market output increases but each firm's output falls.
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