Suppose that the firm with the costs and revenues shown in the graph below iscontemplating whether or not to produce 12 units of output. If it were to produce this manyunits, what (if anything) would happen to the market price? What would be the firm'smarginal revenue for the 12th unit produced? What would be the firm's total revenues perhour?Price and Marginal Cost ($ per unit)$6EMC10 11 12 13 14Output (units per hour)Answer: This firm isin relation to the industry as a whole that its productionmarket price, which would, so its output rate isinfluence the$6 per unit. The market pricethe firm's marginal revenue, which therefore would be MRunit. The firm's hourly total revenues if it were to produce 12 units would be TR$72.+ $6 per4

A perfectly competitive firm is known as a price taker because the strain of competing firms forces…

Suppose that the firm with the costs and revenues shown in the graph below is contemplating whether or not to produce 12 units of output. If it were to produce this many units, what (if anything) would happen to the market price? What would be the firm's marginal revenue for the 12th unit produced? What would be the firm's total revenues per hour? Price and Marginal Cost ($ per unit) $6 E Output (units per hour) MC 11 12 Answer: This firm is in relation to the industry as a whole that its production market price, which would so its output rate is influence the $6 per unit. The market price the firm's marginal revenue, which therefore would be MR unit. The firm's hourly total revenues if it were to produce 12 units would be TR $72. ÷ $6 per ÷

Suppose that the firm with the costs and revenues shown in the graph below is contemplating whether or not to produce 12 units of output. If it were to produce this many units, what (if anything) would happen to the market price? What would be the firm's marginal revenue for the 12th unit produced? What would be the firm's total revenues per hour? Price and Marginal Cost ($ per unit) $6 E Output (units per hour) MC 11 12 Answer: This firm is in relation to the industry as a whole that its production market price, which would so its output rate is influence the $6 per unit. The market price the firm's marginal revenue, which therefore would be MR unit. The firm's hourly total revenues if it were to produce 12 units would be TR $72. ÷ $6 per ÷

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 11PA: Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2...

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