Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134643175
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Question
Chapter 8, Problem 1E
(a)
To determine
Fill in the blanks in the table.
(b)
To determine
Identify the changes in the output choice and profit when the price level falls from $60 to $50.
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The data below shows a tabulation on the production of a hypothetical product:
Output (Q)
Total Cost
0
25
1
32
2
38
3
42
4
48
5
58
6
67
7
78
8
98
Required:
Use the data to answer the following questions:
Determine Total Fixed Cost
Average Variable Cost Schedule
Marginal Cost Schedule
Suppose this product is produced on a perfect market and the price of the commodity = 10. Determine the output Q that will maximize the profits. What is the Maximum profits achieved by the firm? (Show ALL your workings
Suppose Sam sells apples, picked from his apple tree, in a competitive market. Assume all apples are equal in quality, but grow at different heights on the tree. Sam, being fearful of heights, demands greater compensation the higher he goes: So for him, the cost of grabbing an apple rises higher and higher, the higher he must climb, as shown in the Total Cost column in the following table. The market price of an apple is $0.50.
a. Does this suggest that the marginal cost of apples is increasing, decreasing, or staying the same as the quantity of apples picked increases? Why?
b. Complete the table.
c. How many apples does Sam pick?
The data below shows a tabulation on the production of a hypothetical product:
Output (Q)
Total Cost
0
25
1
32
2
38
3
42
4
48
5
58
6
67
7
78
8
98
Required:
Use the data to answer the following questions:
Determine Total Fixed Cost
Average Variable Cost Schedule
Marginal Cost Schedule
Suppose this product is produced on a perfect market and the price of the commodity = 10. Determine the output Q that will maximize the profits. What is the Maximum profits achieved by the firm?
Chapter 8 Solutions
Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (9th Edition) (Pearson Series in Economics)
Ch. 8 - Prob. 1RQCh. 8 - Prob. 2RQCh. 8 - Prob. 3RQCh. 8 - Prob. 4RQCh. 8 - Prob. 5RQCh. 8 - Prob. 6RQCh. 8 - Prob. 7RQCh. 8 - Prob. 8RQCh. 8 - Prob. 9RQCh. 8 - Prob. 10RQ
Ch. 8 - Prob. 11RQCh. 8 - Prob. 12RQCh. 8 - Prob. 13RQCh. 8 - Prob. 14RQCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Suppose you are the manager of a watchmaking firm...Ch. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - A sales tax of 1 per unit of output is placed on a...Ch. 8 - Prob. 15E
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