ind curve: Quantity Price $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 2 4 15 7 10 How much output Q'should the firm produce 6. If Firm XYZ faces a constant marginal cost of $9? Explain your answer! 7. If Firm XYZ faces a constant marginal cost of $7? Explain your answer!

ind curve: Quantity Price $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 2 4 15 7 10 How much output Q'should the firm produce 6. If Firm XYZ faces a constant marginal cost of $9? Explain your answer! 7. If Firm XYZ faces a constant marginal cost of $7? Explain your answer!

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter11: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 14CQ

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: A firm sells its product in two… QuestionAsked Feb 17, 2019104 views A firm sells its product in two different markets. The inverse demand in market A is PA = 72 - 5QA and in market B, it is PB = 60 - 3QB. It has fixed costs of 72. Each unit it produces costs 12, i.e., marginal cost equals 12. To maximize profits, what quantities of output will be sold in each market and what will total profits be?
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2.- A company that works in a perfectly competitive market has a total cost function: TC = Q3 - 52.5Q2 + 1,050Q + 6,750 The supply and demand functions in that market are: QS = 2P -704 Qd = 5,260 - 5P a) How much should you produce to maximize your profits? b) Find what benefit you will get c) Represent graphically the market equilibrium and that of the company. d) Calculate the market consumer surplus. e) Validate the utilities by calculating them as the area of the rectangle on the graph.
Retail Demand is Q=16-Pr Farm Supply is Q=2+.5Pf Marketing Cost Per Unit is MC=$5.00 Quantity Retail Price Marketing Cost Farm-level Demand Price 2 4 6 8 10 Draw a graph of the market showing all relevant curves and functions on graph paper
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