MyLab Economics with Pearson eText -- Access Card -- for Principles of Microeconomics
17th Edition
ISBN: 9780134081168
Author: CASE, Karl E.; Fair, Ray C.; Oster, Sharon E.
Publisher: PEARSON
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Question
Chapter 8, Problem 2.3P
To determine
The total quantity of output, total revenue, total cost and profit.
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Students have asked these similar questions
You are given the following cost data:The total fixed costs are $100.(Photo)If the price of output is $15, how many units of output will this firm produce? What is total revenue? What is total cost? Briefly explain using the concept of marginal cost. What do you think the firm is likely to do in the short run? In the long run?
Select one:a. Profit maximizing Quantity=3b. Profit maximizing Quantity=1c. Profit maximizing Quantity=0d. Profit maximizing Quantity=6
The table below shows the cost of production for Coca-cola 200 ml.
please answer the table
graph the table with marginal cost, average variable cost, average fixed cost and average total cost
explain the relationship of the graph of the arginal cost, average variable cost, average fixed cost and average total cost
Output
Variable Cost
Fixed cost
Total Cost
Marginal Cost
Average Variable Cost
Average Fixed Cost
Average Total Cost
0
0
9
1
694
9
2
833
9
3
1018
9
4
1157
9
-Briefly discuss average costs, including how they are calculated, how they are typically appear on a graph, and what they relate to profitability.
-Briefly explain what is meant by the term "fixed costs" and provide three examples of same. What determines a firm's level of fixed costs?
-Briefly explain what is meant by the term "variable costs" and provide three examples of same.
-Briefly explain how the total revenue for a profit-seeking firm is determined.
Chapter 8 Solutions
MyLab Economics with Pearson eText -- Access Card -- for Principles of Microeconomics
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Similar questions
- Are there fixed costs in the lung-run? Explain briefly.arrow_forwardCompute the average total cost, average variable cost, and marginal cost of producing 50 and 72 haircuts. Draw the graph of line three curves between 60 and 72 haircuts.arrow_forwardA computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.arrow_forward
- Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?arrow_forwardWhat two lines on a cost curve diagram intersect at the shutdown point?arrow_forwardUsing the following table Graph the average variable cost, average total cost and marginal cost curves. Following is the table that shows the cost schedule for a firm operating in a short run. Quantity Production (thousands) Total Fixed cost Total Variable cost Total Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost 0 $400 0 $400 ---- ----- ----- ----- 1 $400 $240 $640 $240 $400 $240 $640 2 $400 $320 $720 $80 $200 $160 $360 3 $400 $380 $780 $60 $133.33 $126.66 $260 4 $400 $420 $820 $40 $100 $105 $205 5 $400 $450 $850 $30 $80 $90 $170 6 $400 $490 $890 $40 $66.67 $81.66 $148.33 7 $400 $580 $980 $90 $57.14 $82.85 $140…arrow_forward
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