EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Question
Chapter 8.3, Problem 2MQ
To determine
State with reasons for provoking the given rules for obtaining the profits are incorrect.
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Students have asked these similar questions
The graph below shows a particular firms marginal revenue (mr) marginal cost (mc) and average total cost (atc) curves, where the market is competitive. Suppose that a new management team is brought in and that this team is initially less concerned about maximizing profits than it is simply about making a profit. What range of production quantities will allow the firm to operate while earning a profit?
Give you're answer by dragging the qmin to Qmax lines into their correct positions. The output will need to lie somewhere between those limits.
Economists assume that by pursuing a strategy of cost minimization of production, most firms try to achieve profit maximization. Can you discuss minimization of cost of production by pursuing a long-run expansion path strategy, instead of a short-run path strategy, ceteris parabus? If you can use a graph that would help me understand thank you
Q)Assume that a competitive firm has the total cost function:
TC=1q^3−40q^2+740q+1600
Suppose the price of the firm's output (sold in integer units) is $650 per unit.
Create tables (but do not use calculus) with columns representing cost, revenue, and profit to find a solution.
A. How many units should the firm produce to maximize profit?
B. What is the total profit at the optimal output level? Please specify your answer as an integer.
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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- Imagine that you are a price-taking firm with the following total cost schedule. Q 1 2 3 4 5 6 7 8 9 TC 12 20 24 28 34 42 52 64 78 Assume that if this firm produces zero they have a total cost of zero. (That is in italics because it's important..... Notice that this is a problem we have done before except for a little twist. Can you notice what it is?) Another way of saying that is that there is no fixed cost. Fill in the following supply schedule. (Enter only integers.) (If you don't know what I'm talking about, pleeeeeease go back and figure out what supply means before you try to answer!) P QS 4 ? 6 ? 8 ? 10 ? 12 ? 14 ?arrow_forwardMarginal Analysis II Question 1 Assume that a competitive firm has the total cost function: TC=1q3−40q2+870q+1500TC=1q3-40q2+870q+1500 Suppose the price of the firm's output (sold in integer units) is $700 per unit. Using calculus and formulas to find a solution (don't just build a table in a spreadsheet as in the previous lesson), how many integer units should the firm produce to maximize profit? Please specify your answer as an integer. Hint 1: The first derivative of the total cost function, which is cumulative, is the marginal cost function, which is incremental. The narrated lecture and formula summary explain how to compute the derivative. Set the marginal cost equal to the marginal revenue (price in this case) to define an equation for the optimal quantity q. Rearrange the equation to the quadratic form aq2 + bq + c = 0, where a, b, and c are constants. Use the quadratic formula to solve for q: q=−b±b2−4ac−−−−−−−√2aq=-b±b2-4ac2a For non-integer quantity, round up and down to…arrow_forwardQ1:(A) Assume the following cost data are for a purely competitive producer: total product average fixed cost Average variable cost Average total cost Marginal cost 0 $45 1 $60 $45 $105 $40 3 $20 $40 $60 $30 4 $15 $37.5 $52.5 $35 5 $12 $37 $49 $40 6 $10 $37.5 $47.5 $45 7 $8.57 $38.57 $47.14 $55 8 $7.50 $40.63 $48.13 $65 9 $6.67 $43.33 $50 $75 10 $6 $46.50 $52.5 At a product price $56.will this firm produce in the short run? why or why not? if it is preferable to produce, what will be the profit maximizing or loss- minimizing output? explain what economic profits or loss will the firm realize per unit of output ? Use MR-MC approach also show economic profit graphically.arrow_forward
- Assume that the cost data in the following table are for a purely competitive producer: TotalProduct AverageFixed Cost AverageVariable Cost AverageTotal Cost Marginal Cost 0 1 $60.00 $45.00 $105.00 $45.00 2 30.00 42.50 72.50 40.00 3 20.00 40.00 60.00 35.00 4 15.00 37.50 52.50 30.00 5 12.00 37.00 49.00 35.00 6 10.00 37.50 47.50 40.00 7 8.57 38.57 47.14 45.00 8 7.50 40.63 48.13 55.00 9 6.67 43.33 50.00 65.00 10 6.00 46.50 52.50 75.00 Instructions: If you are entering any negative numbers be sure to include a negative sign (−) in front of those numbers. Select "Not applicable" and enter a value of "0" for output if the firm does not produce. a. At a product price of $56.00 (i) Will this firm produce in the short run? (Click to select) No Yes (ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? (Click to select) Not applicable Loss-minimizing…arrow_forwardAssume that the cost data in the following table are for a purely competitive producer: TotalProduct AverageFixed Cost AverageVariable Cost AverageTotal Cost Marginal Cost 0 1 $ 60.00 $ 45.00 $ 105.00 $ 45.00 2 30.00 42.50 72.50 40.00 3 20.00 40.00 60.00 35.00 4 15.00 37.50 52.50 30.00 5 12.00 37.00 49.00 35.00 6 10.00 37.50 47.50 40.00 7 8.57 38.57 47.14 45.00 8 7.50 40.63 48.13 55.00 9 6.67 43.33 50.00 65.00 10 6.00 46.50 52.50 75.00 a. At a product price of $56.00 (i) Will this firm produce in the short run? yes (ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? profit- maximizing output = 9 units per firm (iii) What economic profit or loss will the firm realize per unit of output? Profit per unit = $ 16 b. At a product price of $41.00 (i) Will this firm produce in the short run? Yes (ii) If it is preferable to produce, what will be the…arrow_forwardGiven the following profit-loss schedule in the short run, how many units should a firm produce? Quantity Marginal Revenue Total Cost Marginal Cost Average Total Cost 0 2 15 - - 1 2 19.75 4.75 19.75 2 2 23.5 3.75 11.75 3 2 26.5 3 8.83 4 2 29 2.5 7.25 5 2 31 2 6.20 6 2 32.5 1.5 5.42 7 2 33.75 1.25 4.82 8 2 35.25 1.5 4.41 9 2 37.25 2 4.14 10 2 40 2.75 4.00 11 2 43.25 3.25 3.93arrow_forward
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