PRINCIPLES OF MICROECONOMICS (OER)
2nd Edition
ISBN: 9781947172340
Author: Timothy Taylor, Steven A. Greenlaw
Publisher: OpenStax
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Textbook Question
Chapter 8, Problem 39CTQ
The AAA Aquarium Co. sells aquariums for
The total variable costs are
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You own a company that produces widgets. You currently produce 100 widgets; each widget sells for $100 and costs $80 to produce. You are considering increasing your company's production by one unit, upping the total to 101 widgets. At this level of production, total revenue will increase to $10,100, and total costs will increase to $8,120. What is the marginal revenue and the marginal cost of making this change?
A. MR = $10,000 and MC = $8,000
B. MR = $10,100 and MC = $8,120
C. MR = $100 and MC = $120
D. MR = $100 and MC = $80
Taylor used to work as a yoga instructor at the local gym earning $27,000 a year. Taylor quit that job and started working as a personal trainer. Taylor makes $60,000 in total annual revenue. Taylor's only out-of-pocket costs are $12,000 per year for rent and utilities, $1,000 per year for advertising and $1,500 per year for equipment.
Taylor's accounting profit is _______, and Taylor's economic profit is _______.
In a grocery store, shelf space is limited and must be used effectively to increase profit. Two cereal items, FL and KC, compete for total shelf space of 60 square feet. A box of FL occupies 0.2 ft2 and a box of KC needs 0.4 ft2. The maximum daily demands of FL and KC are 200 and 120 boxes, respectively. A box of FL nets PhP 10 in profit and a box of KC PhP 13.50. The owner of the grocery thinks that because the unit profit of KC is 35% higher than that of FL, KC should also be allocated 35% more space than FL, which amounts to allocating about 57% to KC and 43% to FL. What do you think?
Chapter 8 Solutions
PRINCIPLES OF MICROECONOMICS (OER)
Ch. 8 - Firms ill a perfectly competitive market are said...Ch. 8 - Would independent trucking fit the characteristics...Ch. 8 - Look at Table 8.13. What would happen to the films...Ch. 8 - Suppose that the market price increases to 6, as...Ch. 8 - Explain in words why a profit-maximizing film will...Ch. 8 - A firms marginal cost curve above the average...Ch. 8 - If new technology in a perfectly competitive...Ch. 8 - A market in perfect competition is in long-run...Ch. 8 - Productive efficiency and allocative efficiency...Ch. 8 - Explain how the profit-maximizing rule of setting...
Ch. 8 - A single firm in a perfectly competitive market is...Ch. 8 - What are the four basic assumptions of perfect...Ch. 8 - What is a price taker firm?Ch. 8 - How does a perfectly competitive firm decide what...Ch. 8 - What prevents a perfectly competitive firm from...Ch. 8 - How does a perfectly competitive film calculate...Ch. 8 - Briefly explain the reason for the shape of a...Ch. 8 - What two rules does a perfectly competitive firm...Ch. 8 - How does the average cost curve help to show...Ch. 8 - What two lines on a cost curve diagram intersect...Ch. 8 - Should a firm shut down immediately if it is...Ch. 8 - How does the average variable cost curve help a...Ch. 8 - What two lines on a cost curve diagram intersect...Ch. 8 - Why does entry occur?Ch. 8 - Why does exit occur?Ch. 8 - Do entry and exit occur in the short run, the long...Ch. 8 - What price will a perfectly competitive firm end...Ch. 8 - Will a perfectly competitive market display...Ch. 8 - Will a perfectly competitive market display...Ch. 8 - Finding a life partner is a complicated process...Ch. 8 - Can you name five examples of perfectly...Ch. 8 - Your company operates in a perfectly competitive...Ch. 8 - Since a perfectly competitive firm can sell as...Ch. 8 - Many films in the United States file for...Ch. 8 - Why will profits for films in a perfectly...Ch. 8 - Why will losses for firms in a perfectly...Ch. 8 - Assuming that the market for cigarettes is in...Ch. 8 - In the argument for why perfect competition is...Ch. 8 - The AAA Aquarium Co. sells aquariums for 20 each....Ch. 8 - Perfectly competitive firm Doggies Paradise Inc....Ch. 8 - A computer company produces affordable,...
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