ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337408059
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 9, Problem 6P
To determine
The reasons for worse performance of the society under
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Independent University, Bangladesh
ECN-201: Principles of Microeconomics
Spring 2021
Final Assignment
1. Use the table below to answer the following questions:
Costs
Total Cost Marginal
Cost
Revenues
Price ($)
Quantity
Produced
Marginal
Revenue
Total
Quantity
Demanded
Revenue
170
160
150
140
100
140
184
2
3
3
230
280
4
5
4
5
130
120
110
100
95
335
395
6
7
8
7
475
8
575
a. Find the average fixed cost and average variable cost for the 4" unit of output.
b. How much does profit change if 6 units are sold instead of 5?
1) Complete the table.
Price
Quantity Total Marginal Fixed
Demanded Revenue Revenue Cost
18
600
17
700
16
800
15
900
14
1000
13
1100
12
1200
500
500
500
500
500
500
500
Variable Total
Cost
Cost
5210
5640
6135
6700
7335
8060
8900
Average
Variable Marginal
Cost
Cost
MR - MC
Profit
Percent
Contribution
Margin
1. The following table shows the demand and supply for a popular pair of shoes sold by
Akron Enterprise Limited (AEL).
TABLE 1
Price per pair
Quantity
Quantity
Market
Pressure on
$
Demanded
supplied
Condition
price
105
25000
75000
Surplus
90
30000
70000
75
40000
60000
Downward
60
50000
50000
45
60000
35000
30
80000
20000
Shortage
15
100000
5000
Upward
Other information regarding AEL are as follows:
Fixed Cost = $2000 Variable Cost = 20Q
d. Explain and graphically illustrate a price floor implemented by the government using an
appropriate price in the table above.
e. If Akron Enterprise Limited sells its product at the equilibrium price, calculate total
revenue and total profit.
f. At what level of price(s) identify above is a shut-down price for Akron Enterprise
Limited.
g. Graphically illustrate the shutdown position for a typical firm.
Chapter 9 Solutions
ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
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