Microeconomics
Microeconomics
5th Edition
ISBN: 9781319098780
Author: Paul Krugman, Robin Wells
Publisher: Worth Publishers
Question
Book Icon
Chapter 9, Problem 10P
To determine

To answer:

The questions based on the table

Concept Introduction:

Total profit: The total profit is the difference between the total benefit and total cost.

Marginal cost: Marginal cost is the additional cost made to the total cost in the production of an additional unit of the commodity

Marginal benefit: The marginal benefit is the additional benefit resulted from producing the additional unit of a good or service.

Marginal Analysis: Marginal analysis is used to compare the benefits and cost derives out of a specific action. The marginal changes refers to the small incremental adjustment to a plan of action

Expert Solution & Answer
Check Mark

Explanation of Solution

    Quantity of diamonds Total benefit Marginal benefit Total cost Marginal cost
    Microeconomics, Chapter 9, Problem 10P , additional homework tip  1 Microeconomics, Chapter 9, Problem 10P , additional homework tip  2 - Microeconomics, Chapter 9, Problem 10P , additional homework tip  3 -
    Microeconomics, Chapter 9, Problem 10P , additional homework tip  4 Microeconomics, Chapter 9, Problem 10P , additional homework tip  5 Microeconomics, Chapter 9, Problem 10P , additional homework tip  6 Microeconomics, Chapter 9, Problem 10P , additional homework tip  7 Microeconomics, Chapter 9, Problem 10P , additional homework tip  8
    Microeconomics, Chapter 9, Problem 10P , additional homework tip  9 Microeconomics, Chapter 9, Problem 10P , additional homework tip  10 Microeconomics, Chapter 9, Problem 10P , additional homework tip  11 Microeconomics, Chapter 9, Problem 10P , additional homework tip  12 Microeconomics, Chapter 9, Problem 10P , additional homework tip  13
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    Microeconomics, Chapter 9, Problem 10P , additional homework tip  39 Microeconomics, Chapter 9, Problem 10P , additional homework tip  40 Microeconomics, Chapter 9, Problem 10P , additional homework tip  41 Microeconomics, Chapter 9, Problem 10P , additional homework tip  42 Microeconomics, Chapter 9, Problem 10P , additional homework tip  43
Microeconomics, Chapter 9, Problem 10P , additional homework tip  44
  1. In the marginal cost and marginal benefit curves are given in the above graph the intersection of the marginal benefit and marginal cost curve is the equilibrium so at the equilibrium the quantity of diamond is Microeconomics, Chapter 9, Problem 10P , additional homework tip  45 so it is considered as the optimal quantity to be produced.
  2. Quantity of diamonds Total benefit Total cost Total profit
    Microeconomics, Chapter 9, Problem 10P , additional homework tip  46 Microeconomics, Chapter 9, Problem 10P , additional homework tip  47 Microeconomics, Chapter 9, Problem 10P , additional homework tip  48 -
    Microeconomics, Chapter 9, Problem 10P , additional homework tip  49 Microeconomics, Chapter 9, Problem 10P , additional homework tip  50 Microeconomics, Chapter 9, Problem 10P , additional homework tip  51 Microeconomics, Chapter 9, Problem 10P , additional homework tip  52
    Microeconomics, Chapter 9, Problem 10P , additional homework tip  53 Microeconomics, Chapter 9, Problem 10P , additional homework tip  54 Microeconomics, Chapter 9, Problem 10P , additional homework tip  55 Microeconomics, Chapter 9, Problem 10P , additional homework tip  56
    Microeconomics, Chapter 9, Problem 10P , additional homework tip  57 Microeconomics, Chapter 9, Problem 10P , additional homework tip  58 Microeconomics, Chapter 9, Problem 10P , additional homework tip  59 Microeconomics, Chapter 9, Problem 10P , additional homework tip  60
    Microeconomics, Chapter 9, Problem 10P , additional homework tip  61 Microeconomics, Chapter 9, Problem 10P , additional homework tip  62 Microeconomics, Chapter 9, Problem 10P , additional homework tip  63 Microeconomics, Chapter 9, Problem 10P , additional homework tip  64
    Microeconomics, Chapter 9, Problem 10P , additional homework tip  65 Microeconomics, Chapter 9, Problem 10P , additional homework tip  66 Microeconomics, Chapter 9, Problem 10P , additional homework tip  67 Microeconomics, Chapter 9, Problem 10P , additional homework tip  68
    Microeconomics, Chapter 9, Problem 10P , additional homework tip  69 Microeconomics, Chapter 9, Problem 10P , additional homework tip  70 Microeconomics, Chapter 9, Problem 10P , additional homework tip  71 Microeconomics, Chapter 9, Problem 10P , additional homework tip  72
    Microeconomics, Chapter 9, Problem 10P , additional homework tip  73 Microeconomics, Chapter 9, Problem 10P , additional homework tip  74 Microeconomics, Chapter 9, Problem 10P , additional homework tip  75 Microeconomics, Chapter 9, Problem 10P , additional homework tip  76
    Microeconomics, Chapter 9, Problem 10P , additional homework tip  77 Microeconomics, Chapter 9, Problem 10P , additional homework tip  78 Microeconomics, Chapter 9, Problem 10P , additional homework tip  79 Microeconomics, Chapter 9, Problem 10P , additional homework tip  80
  3. The fourth column of the above table represents the total profit of the firm; the total profit is the difference between total benefit and total cost the company can earn the highest profit at which the fifth quantity is produced.

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