ECNS 201 PRINTOUT
8th Edition
ISBN: 9781337096553
Author: Mankiw
Publisher: CENGAGE L
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Question
Chapter 14, Problem 3PA
Subpart (a):
To determine
Profit maximization.
Subpart (b):
To determine
Profit maximization.
Subpart (c):
To determine
Profit in the long run.
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The diagram displays short-run cost curves for a facility that produces liquid crystal display (LCD) screens for cell phones:
a) What are the daily total fixed costs of producing LCD screens?b) What are the total variable costs of producing 100 LCD screens per day?c) What are the total costs of producing 100 LCD screens per day?d) What is the marginal cost of producing 100 LCD screens instead of 99? (Hint: To answer this question, you must first determine the total costs-or, alternatively, the total variable costs of producing 99 LCD screens.)
image 1 :
the following average-total-cost schedule:
Quantity
Average Total Cost
(Number of players)
(Dollars)
600
300
601
301
Your current level of production is 600 devices, all of which have been sold. Someone calls, desperate to buy one of your music players. The caller offers you $550 for it.
You ( should , or should not ) ? accept the offer.
image 2 :
Quantity
Total Cost
Variable Cost
(Dozens of pizzas)
(Dollars)
(Dollars)
0
280
0
1
320
40
2
350
70
3
380
100
4
420
140
5
470
190
6
530
250
The pizzeria's fixed cost is ?
.
Requireda. How much is the fixed cost to produce the natural-organic oil?
b. How many barrels of natural-organic oil should the firm produce to maximize its profit?
c. How much is the price of the natural-organic oil per barrel?
d. At what production level would the marginal cost exceed the average cost?
e.bHow many barrels of natural-organic oil reflect the lowest minimum average variable cost?
Chapter 14 Solutions
ECNS 201 PRINTOUT
Ch. 14.1 - Prob. 1QQCh. 14.2 - How does a competitive firm determine its...Ch. 14.3 - Prob. 3QQCh. 14 - Prob. 1CQQCh. 14 - Prob. 2CQQCh. 14 - Prob. 3CQQCh. 14 - Prob. 4CQQCh. 14 - Prob. 5CQQCh. 14 - Prob. 6CQQCh. 14 - Prob. 1QR
Ch. 14 - Prob. 2QRCh. 14 - Prob. 3QRCh. 14 - Prob. 4QRCh. 14 - Prob. 5QRCh. 14 - Prob. 6QRCh. 14 - Prob. 7QRCh. 14 - Prob. 8QRCh. 14 - Prob. 1PACh. 14 - Prob. 2PACh. 14 - Prob. 3PACh. 14 - Prob. 4PACh. 14 - Prob. 5PACh. 14 - A firm in a competitive market receives 500 in...Ch. 14 - Prob. 7PACh. 14 - Prob. 8PACh. 14 - Prob. 9PACh. 14 - Prob. 10PACh. 14 - Suppose that each firm in a competitive industry...
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