Microeconomics 20th Edition Community College of Philadelphia Custom
17th Edition
ISBN: 9781308150468
Author: McConnell
Publisher: MCG/CREATE
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Question
Chapter 9.8, Problem 1QQ
To determine
Short run average total cost .
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Q1:(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
2
$30
$42.5
$72.5
$35
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.
Output (Concession Stand Items)
Number of Workers Employed Per Day
Price of Labor Per Worker Per Day
Total Variable Cost of Labor
Total Fixed Costs Per Day
Total Cost Per Day
Average Price of Concession Stand Items
Total Revenue
Profit
Average Variable Cost
Average Fixed Cost
Average Total Cost
Marginal Cost
Marginal Revenue
0
0
$120
0
$2,000
2000
$8.00
0
-2000
0
0
0
0
8
100
2
$120
240
$2,000
2240
$8.00
800
-1640
2.40
20
22.40
2.40
8
400
4
$120
480
$2,000
2480
$8.00
3200
720
1.20
5
6.20
0.80
8
750
6
$120
720
$2,000
2720
$8.00
6000
3280
0.96
2.66
3.62
0.67
8
900
8
$120
960
$2,000
2960
$8.00
7200
4240
1.07
2.22
3.29
1.60
8
1,025
10
$120
1200
$2,000
3200
$8.00
8200
5000
1.17
1.95
3.12
1.92
8
1,125
12
$120
1440
$2,000
3440
$8.00
9000
5560
1.28
1.77
3.06
2.40…
Output (Concession Stand Items)
Number of Workers Employed Per Day
Price of Labor Per Worker Per Day
Total Variable Cost of Labor
Total Fixed Costs Per Day
Total Cost Per Day
Average Price of Concession Stand Items
Total Revenue
Profit
Average Variable Cost
Average Fixed Cost
Average Total Cost
Marginal Cost
Marginal Revenue
0
0
$120
0
$2,000
2000
$8.00
0
-2000
0
0
0
0
8
100
2
$120
240
$2,000
2240
$8.00
800
-1640
2.40
20
22.40
2.40
8
400
4
$120
480
$2,000
2480
$8.00
3200
720
1.20
5
6.20
0.80
8
750
6
$120
720
$2,000
2720
$8.00
6000
3280
0.96
2.66
3.62
0.67
8
900
8
$120
960
$2,000
2960
$8.00
7200
4240
1.07
2.22
3.29
1.60
8
1,025
10
$120
1200
$2,000
3200
$8.00
8200
5000
1.17
1.95
3.12
1.92
8
1,125
12
$120
1440
$2,000
3440
$8.00
9000
5560
1.28
1.77
3.06
2.40…
Chapter 9 Solutions
Microeconomics 20th Edition Community College of Philadelphia Custom
Ch. 9.2 - Prob. 1QQCh. 9.2 - Prob. 2QQCh. 9.2 - Prob. 3QQCh. 9.2 - Prob. 4QQCh. 9.5 - Prob. 1QQCh. 9.5 - Prob. 2QQCh. 9.5 - Prob. 3QQCh. 9.5 - Prob. 4QQCh. 9.8 - Prob. 1QQCh. 9.8 - Prob. 2QQ
Ch. 9.8 - Prob. 3QQCh. 9.8 - Prob. 4QQCh. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 1RQCh. 9 - Which of the following are short-run and which are...Ch. 9 - Prob. 3RQCh. 9 - Indicate how each of the following would shift the...Ch. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4P
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Similar questions
- Output (Concession Stand Items) Number of Workers Employed Per Day Price of Labor Per Worker Per Day Total Variable Cost of Labor Total Fixed Costs Per Day Total Cost Per Day Average Price of Concession Stand Items Total Revenue Profit Average Variable Cost Average Fixed Cost Average Total Cost Marginal Cost Marginal Revenue 0 0 $120 0 $2,000 2000 $8.00 0 -2000 0 0 0 0 8 100 2 $120 240 $2,000 2240 $8.00 800 -1640 2.40 20 22.40 2.40 8 400 4 $120 480 $2,000 2480 $8.00 3200 720 1.20 5 6.20 0.80 8 750 6 $120 720 $2,000 2720 $8.00 6000 3280 0.96 2.66 3.62 0.67 8 900 8 $120 960 $2,000 2960 $8.00 7200 4240 1.07 2.22 3.29 1.60 8 1,025 10 $120 1200 $2,000 3200 $8.00 8200 5000 1.17 1.95 3.12 1.92 8 1,125 12 $120 1440 $2,000 3440 $8.00 9000 5560 1.28 1.77 3.06 2.40…arrow_forwardQUESTION 2 (a) Use the concepts of economies and diseconomies of scale to explain the shape of a firm’s long-run ATC curve. What is the concept of minimum efficient scale? What bearing can the shape of the long-run ATC curve have on the structure of an industry? (b) If a firm in monopoly maximizes revenue, does it automatically maximize profit too? Explain the content with relevant example and diagrams.arrow_forwardPrice (dollars per packet of chips) Quantity demanded (millions of packets of chips per year) Quantity supplied (millions of packets of chips per year) 4 135 26 5 104 53 6 81 81 7 68 98 8 53 110 9 39 121 C: Harry-Chips is a firm in the potato chips industry. Harry-Chips produces 10 million packets of chips per year at an average total cost (ATC) of $4. What is Harry-Chips short-run profit or loss per year? Explain your answer in detail. D: Given your answer in part d, would new firms enter or existing firms exit the market? What would be the long-run impact on Harry-Chips’ profit or loss? Explain in detail.arrow_forward
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