Table 1 below identifies the average variable cost (CVM), the average fixed cost (CFM) and the marginal cost (Cm) of a firm in pure and perfect competition. Tableau 1 Q CVM CFM Cm 100 12 20 - 200 10 10 300 11,33 6,67 400 14 5 500 18 4 2-1- Complete the marginal cost column. 2-2- What is the value of the break-even point? 2-3- What is the value of the closing threshold? Suppose the market price is $ 22. 2-4- At this price, what quantity would maximize the total profit of the company? 2-5- If the market price fell to $ 14, what would you recommend to this business?
Table 1 below identifies the average variable cost (CVM), the average fixed cost (CFM) and the marginal cost (Cm) of a firm in pure and perfect competition. Tableau 1 Q CVM CFM Cm 100 12 20 - 200 10 10 300 11,33 6,67 400 14 5 500 18 4 2-1- Complete the marginal cost column. 2-2- What is the value of the break-even point? 2-3- What is the value of the closing threshold? Suppose the market price is $ 22. 2-4- At this price, what quantity would maximize the total profit of the company? 2-5- If the market price fell to $ 14, what would you recommend to this business?
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: Firms In Competitive Markets
Section: Chapter Questions
Problem 4PA
Related questions
Question
Table 1 below identifies the
Tableau 1
Q |
CVM |
CFM |
Cm |
100 |
12 |
20 |
- |
200 |
10 |
10 |
|
300 |
11,33 |
6,67 |
|
400 |
14 |
5 |
|
500 |
18 |
4 |
2-1- Complete the marginal cost column.
2-2- What is the value of the break-even point?
2-3- What is the value of the closing threshold?
Suppose the market price is $ 22.
2-4- At this price, what quantity would maximize the total profit of the company?
2-5- If the market price fell to $ 14, what would you recommend to this business?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning