Assume the table below is extracted from Dodi company Ltd a perfectly competitive firm selling cabbages. Assume that when the firm’s selling price is AUD 15, the marginal revenue is also AUD15. Complete the table below and answer the questions that follow. Quantity (Kg) AVC AFC ATC MC 2.50 7.50 5.10 3.50 9.00 3.00 9.00 4.50 10.00 2.50 12.50 5.50 14.00 1.80 13.00 6.00 18.00 1.67 15.00 10.00 25.00 1.43 16.00 Qty = Quantity; AVC=Average variable cost; AFC = Average fixed cost; ATC=Average Total Cost; MC= Marginal Cost; Rev = Revenue; MR= Marginal Revenue; Kg = Kilogram Based on your answers to the table above, identify the profit maximizing quantiy supplied by the firm. Calculate the amount of profit/loss at this optimal point. Show your work. State and examine the characteristics for a perfectly competitive firm such as Dodi Ltd selling cabbages.
Assume the table below is extracted from Dodi company Ltd a perfectly competitive firm selling cabbages. Assume that when the firm’s selling price is AUD 15, the marginal revenue is also AUD15. Complete the table below and answer the questions that follow. Quantity (Kg) AVC AFC ATC MC 2.50 7.50 5.10 3.50 9.00 3.00 9.00 4.50 10.00 2.50 12.50 5.50 14.00 1.80 13.00 6.00 18.00 1.67 15.00 10.00 25.00 1.43 16.00 Qty = Quantity; AVC=Average variable cost; AFC = Average fixed cost; ATC=Average Total Cost; MC= Marginal Cost; Rev = Revenue; MR= Marginal Revenue; Kg = Kilogram Based on your answers to the table above, identify the profit maximizing quantiy supplied by the firm. Calculate the amount of profit/loss at this optimal point. Show your work. State and examine the characteristics for a perfectly competitive firm such as Dodi Ltd selling cabbages.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: Monopoly
Section: Chapter Questions
Problem 10PA
Related questions
Question
Assume the table below is extracted from Dodi company Ltd a
- Complete the table below and answer the questions that follow.
Quantity (Kg) |
AVC |
AFC |
ATC |
MC |
2.50 |
7.50 |
5.10 |
|
|
3.50 |
9.00 |
3.00 |
|
9.00 |
4.50 |
10.00 |
2.50 |
|
12.50 |
5.50 |
14.00 |
1.80 |
|
13.00 |
6.00 |
18.00 |
1.67 |
|
15.00 |
10.00 |
25.00 |
1.43 |
|
16.00 |
Qty = Quantity; AVC=
- Based on your answers to the table above, identify the profit maximizing quantiy supplied by the firm. Calculate the amount of
profit/loss at this optimal point. Show your work. - State and examine the characteristics for a perfectly competitive firm such as Dodi Ltd selling cabbages.
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