Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText - Access Card Package (12th Edition)
12th Edition
ISBN: 9780134004983
Author: Michael Parkin
Publisher: PEARSON
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Question
Chapter 12, Problem 6SPA
To determine
What is the market price and the economic profit or loss of the firm in a short run.
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Students have asked these similar questions
A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed cost of $200.
What is its profit? What is its marginal cost? What is its average variable cost?
The market for smoothies is perfectly competitive and the market demand schedule
is in the first two columns in the below table. Each of the 100 producers of
smoothies has the costs given in columns 3- 6 when it uses its least-cost plant. What
is the market price of a smoothie?
$5.25
$4.25
$2.91
$2.20
Market demand schedule
Quantity
demanded
(smoothies
per hour)
1,000
Price
(dollars per
smoothie)
1.90
2.00
2.20
2.91
4.25
5.25
5.50
950
800
700
550
400
300
Output
(smoothies
per hour)
3
4
5
6
7
8
9
Producers of smoothies Costs
Marginal cost
(dollars per
additional
smoothie)
2.50
2.20
1.90
2.00
2.91
4.25
8.00
Average
variable cost
(dollars per smoothie)
4.00
3.53
3.24
3.00
2.91
3.00
Average total
cost
3.33
7.33
6.03
5.24
4.67
4.34
4.25
4.44
Suppose that each firm in a competitive industry has the following costs:
TC = 50+ q?
Total Cost:
Marginal Cost: MC=q
where q is an individual firm's quantity produced.
The market demand curve for this product is:
Demand Qp = 160 – 4P
where P is the price and Q is the total quantity of the good.
Each firm's fixed cost is
What is each firm's variable cost?
50+9
Which of the following represents the equation for each firm's average total cost?
50+9
Complete the following table by computing the marginal cost and average total cost for q from 5 to 15.
Marginal Cost
Average Total Cost
Chapter 12 Solutions
Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText - Access Card Package (12th Edition)
Ch. 12.1 - Prob. 1RQCh. 12.1 - Prob. 2RQCh. 12.1 - Prob. 3RQCh. 12.1 - Prob. 4RQCh. 12.2 - Prob. 1RQCh. 12.2 - Prob. 2RQCh. 12.2 - Prob. 3RQCh. 12.3 - Prob. 1RQCh. 12.3 - Prob. 2RQCh. 12.3 - Prob. 3RQ
Ch. 12.4 - Prob. 1RQCh. 12.4 - Prob. 2RQCh. 12.5 - Prob. 1RQCh. 12.5 - Prob. 2RQCh. 12.5 - Prob. 3RQCh. 12.6 - Prob. 1RQCh. 12.6 - Prob. 2RQCh. 12.6 - Prob. 3RQCh. 12.6 - Prob. 4RQCh. 12 - Prob. 1SPACh. 12 - Prob. 2SPACh. 12 - Prob. 3SPACh. 12 - Prob. 4SPACh. 12 - Prob. 5SPACh. 12 - Prob. 6SPACh. 12 - Prob. 7SPACh. 12 - Prob. 8SPACh. 12 - Prob. 9SPACh. 12 - Prob. 10APACh. 12 - Prob. 11APACh. 12 - Prob. 12APACh. 12 - Prob. 13APACh. 12 - Prob. 14APACh. 12 - Prob. 15APACh. 12 - Prob. 16APACh. 12 - Prob. 17APACh. 12 - Prob. 18APACh. 12 - Prob. 19APACh. 12 - Prob. 20APACh. 12 - Prob. 21APACh. 12 - Prob. 22APACh. 12 - Prob. 23APA
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