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Answer the questions based on the table below
- Complete the table below.
- In which market does this firm operate? Explain your reasons.
- Determine the equilibrium output. Calculate whether the firm will it be earning a profit or suffering a loss at equilibrium.
| Quantity(unit) | Total Revenue($) | Average Revenue($) | MarginalRevenue($) | TotalCost($) | MarginalCost($) |
| 1 | 10 | 5 | |||
| 2 | 18 | 11 | |||
| 3 | 24 | 16 | |||
| 4 | 28 | 20 | |||
| 5 | 30 | 23 | |||
| 6 | 30 | 25 |
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- Blue INK is the only cabel service provider in Gazipur. The diagram below depicts the price, output and costs incurred by Blue INK. Use the graph to answer the following questions: What is the Total revenue generated by Blue INK at the profit maximizing level of output?[ Answer in Numerical value only.i;e. 1,2,3,4,5] If the Cable Service Market turns into a Perfectly Competitive Market, what will be the total ammount of the service provided? [ Answer in Numerical value only] If the market turns into a Monopoly market again, what will be the total deadweight loss created? [ Answer in Numerical value only]A firm in a competitive market receives $500 in total revenue and has marginal revenue of $10. What is the average revenue, and how many units were sold? Microeconomics - Mankiw1- Suppose that the total cost function of a firm is given as follows;TC = 500 + 2Q2And the price of the firm’s product is determined by the market equilibrium at $100.a- Set the profit maximizing condition . Find the profit maximizing output level for this firm .b- What is the total revenue ?c- What is the total cost ?d- What is the profit earned by the firm ?e- Illustrate your answer by using a well-labeled graph .f- Denote the break even price level with Pb on the same graph .g- Denote the shut down price level with Ps on the same graph.h- Show the firm’s supply curve on the same graph .i- Does the firm function in short-run or long-run ? Why ?
- QUESTION 8 When the marginal-cost curve lies below the marginal-revenue curve a. the firm cannot improve its profit since revenue is already greater than cost. b. marginal revenue is greater than marginal cost, and the firm should therefore increase production to increase profits. c. marginal revenue is greater than marginal cost, and the firm should therefore decrease production to increase profits. d. marginal revenue is less than marginal cost, and the firm should therefore decrease production to increase profits. e. it is not possible for this firm to increase profits since it is failing to operate at an efficient point.Bavarian Crystal Works designs and produces crystal wine decanters for export to international markets. The marketing manager of Bavarian Crystal Works estimates the demand curve for each month to be: P=1,000-0.0025Q Where Q is the number of wine decanters produced monthly. Bavarian Crystal Works also pays a lease for its factory and equipment every month in the amount of $1,000,000. Finally, the cost to produce each wine decanter is $200. What quantity would maximize profits? What is the optimal price for Bavarian Crystals to charge?At its current level of production a profit-maximizing firm in a competitive market receives $15 for each unit it produces, and faces an average cost of $10. At the market price of $15, the firm’s marginal cost curve crosses the marginal revenue curve at an output level of 1,000 units. A. Draw a diagram that depicts the typical firm in this market. B. What is the firm’s current profit? C. What changes are likely to occur in this market and why?
- Use the profit maximising condition to advise on the quantity that the firm should produce and the price they should charge. Given the information in the diagram what would be the total revenue and total cost of this firm? Would the firm earn supernormal profit or make a loss? What is the size of the profit or loss? Identify the equilibrium quantity and price if the firm is forced to operate as a perfectly competitive enterprise.QUESTION 2 A firm has the following revenue and cost functions. TR= 90 Q - Q^2 TC=2Q^2 + 30Q Determine the quantity level at which the firm maximizes its total profit.(Hint: use marginal revenue=marginal cost rule)Your business, which has some market power, has the following demand (D), marginal revenue (MR), marginal cost (MC), and average cost (AC) curves. Move point E to label the profit-maximizing price and quantity for your firm. If the goal of your business is to maximize profit, how much will it produce, and what price will it charge? -The business will exit the market because it is unable to cover its average costs. -The business will produce 40 units, and charge a price of $5. -The business will produce 30 units, and charge a price of $3. -The business will produce 30 units, and charge a price of $6.
- A firm has the following revenue and cost functions. TR = 60 Q – Q^2TC = 1/2 Q^2 +30Q + 30Determine the quantity level at which the firm maximizes its total profit.(Hint: use marginal revenue = marginal cost rule)Question 2 TR=90Q - Q2 TC=2Q2 + 30Q Determine the quantity level at which the firm maximizes its total profit.(hint:use marginal revenue=marginal cost rule)3. The components of marginal revenueJabari's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Jabari initially produced eight trucks, but then decided to increase production to nine trucks. The following graph gives the demand curve faced by Jabari’s HookNLadder. As the graph shows, in order to sell the additional fire truck, Jabari must lower the price from $80,000 to $60,000 per truck. Notice that Jabari gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial eight engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $60,000 rather than $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $60,000. 3. The components of marginal revenue Jabari's HookNLadder…
