EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Question
Chapter 8, Problem 8.6P
A
To determine
Provide with the short run supply curve for the given information of the price taking firm.
B
To determine
Find out if the firm has any shut down price, and the lowest price at which the firm produces.
C
To determine
Without the using of Calculus, prove whether true or false the claim and the information provided by the consultant.
D
To determine
The consultant proposing that the price less than $3 will lead to losses, explain it.
E
To determine
Prove if the given recommendation is right or wrong.
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Students have asked these similar questions
Assume that a competitive firm has the total cost function: TC=1q3−40q2+880q+2000 T C = 1 q 3 - 40 q 2 + 880 q + 2000 Suppose the price of the firm's output (sold in integer units) is $550 per unit. Create tables (but do not use calculus) with columns representing cost, revenue, and profit to find a solution.
How many units should the firm produce to maximize profit? Please specify your answer as an integer.
What is the total profit at the optimal output level? Please specify your answer as an integer.
Bitcom, a manufacturer of electronics, estimates the following relation between marginal cost of production and monthly output: MC= $150+ 0.005Q
What does this function imply about the effect of the law of diminishing returns on Bitcom’s short-run cost function?
Calculate the marginal cost of production at 1,500, 2,000, and 3,500 units of output.
Assume Bitcom operates as a price taker in a competitive market. What is this firm’s profit-maximizing level of output if the market price is $175?
Compute Bitcom’s short-run supply curve for its product.
Provide a 100 word summary of how this can be applied to the current economy.
Show Calculations and can it be done in Excel?
Assume that a competitive firm has the total cost function: TC=1q3−40q2+820q+1900 T C = 1 q 3 - 40 q 2 + 820 q + 1900 Suppose the price of the firm's output (sold in integer units) is $600 per unit. How many units should the firm produce to maximize profit? What is the total profit at the optimal output level? Please specify your answers as integers.
Chapter 8 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 8.3 - Prob. 1MQCh. 8.3 - Prob. 2MQCh. 8.3 - Prob. 1.1MQCh. 8.3 - Prob. 2.1MQCh. 8.4 - Prob. 1TTACh. 8.4 - Prob. 2TTACh. 8.4 - Prob. 1MQCh. 8.4 - Prob. 2MQCh. 8.5 - Prob. 1TTACh. 8.5 - Prob. 2TTA
Ch. 8.5 - Prob. 1.1TTACh. 8.5 - Prob. 2.1TTACh. 8.5 - Prob. 1MQCh. 8.5 - Prob. 2MQCh. 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. 10RQCh. 8 - Prob. 8.1PCh. 8 - Prob. 8.2PCh. 8 - Prob. 8.3PCh. 8 - Prob. 8.4PCh. 8 - Prob. 8.5PCh. 8 - Prob. 8.6PCh. 8 - Prob. 8.7PCh. 8 - Prob. 8.8PCh. 8 - Prob. 8.9PCh. 8 - Prob. 8.10P
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Similar questions
- A firm in a perfectly competitive industry has patented a newprocess for making widgets. The new process lowers the firm’saverage cost, meaning that this firm alone (although still aprice taker) can earn real economic profits in the long run. a. If the market price is $20 per widget and the firm’s marginalcost is given by MC=0.4q , where q is the dailywidget production for the firm, how many widgets willthe firm produce? b. Suppose a government study has found that the firm’snew process is polluting the air and estimates the socialmarginal cost of widget production by this firm to be. If the market price is still $20, what is thesocially optimal level of production for the firm? Whatshould be the rate of a government-imposed excise tax tobring about this optimal level of production? c. Graph your results.arrow_forwardSuppose the cost function for a firm is given by C(Q) = 100 + Q2. If the firm sells output in a perfectly competitive market and other firms in the industry sell output at a price of $10,A) What level of output should the firm produce to maximize profits or minimize losses?B) What are the profits at the optimal output amount? C) Should the company produce this optimal amount or should it shut down?arrow_forwardSuppose the cost function for a firm is given by C(Q) = 100 + Q2. If the firm sells output in a perfectly competitive market and other firms in the industry sell output at a price of $10, what level of output should the firm produce to maximize profits or minimize losses? What will be the level of profits or losses if the firm makes the optimal decision?arrow_forward
- The total cost function of a firm producing Jeans is TC = 0.5Q3− 15Q2 + 175Q + 100, where Q is output. a.What are the total variable cost (TVC) and the total fixed cost (TFC) in this case? b.The average cost is given by AC = TC/Q, the average variable cost is AVC = TVC/Q and the average fixed cost is AFC = TFC/Q. Find the AC, AVC and AFC functions. c. If the marginal cost is MC = 3(0.5)Q2 - 2(15)Q + 175, then roughly sketch the graph of MC, AVC and AC (If you know how to use Excel, then you can get more accurate graphs). What relationship do you observe between the three cost curves?arrow_forwardThe total cost of a firm is TC(Q)=4Q2+6Q+34. Accordingly, its marginal cost is 2*4*Q+6 when its output is Q. Find the output level where the ATC is minimized.arrow_forwardShould a firm shut down if its weekly revenue is $1,000, its variable cost is $500, and its fixed cost is$800, of which $600 is avoidable if it shuts down? Explain.arrow_forward
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