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Cable company management wants to know how to maximize total profit, and what price to set. 9) What's the profit maximizing output? 10) What's the profit maximizing price? I 11) Continuing on from the last problem, what are total profits when profits are maximized?

Cable company management wants to know how to maximize total profit, and what price to set. 9) What's the profit maximizing output? 10) What's the profit maximizing price? I 11) Continuing on from the last problem, what are total profits when profits are maximized?

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
ChapterA: The Use Of Mathematics In Principles Of Economics
Section: Chapter Questions
Problem 3RQ: Exercise A3 What dome slices of a pie chart represent?
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Questions 9-17
ste board F TPUT 80 70 60 50 40 30 20 10 0 A $/Q 0 Arial BIU- : Font X ✓ B 20000 40000 Reset to baseline Go to answer sheet Accessibility: Unavailable 12 Type here to search fx A A 1A5 C FS 60000 80000 Questions Print == EE Alignment 100000 MONOPOLY ANSWER SHEET ANSWER BIN iT MC AC DEMAND MR Q C ab HIH 5. 5 H E Price (AR) MR AR-AC AR-MC Output AC MC MARKET DATA $ % 98 Cone Form MR-MC MC-AC Number FIRM COST DATA Income Tax per unit $61.71 $49.61 $34.45 $48.35 20,000 $27.26 $13.36 $36.24 -$13.89 POLICY VARIABLES $55,000 $0.00 F G hp
Transcribed Image Text:ste board F TPUT 80 70 60 50 40 30 20 10 0 A $/Q 0 Arial BIU- : Font X ✓ B 20000 40000 Reset to baseline Go to answer sheet Accessibility: Unavailable 12 Type here to search fx A A 1A5 C FS 60000 80000 Questions Print == EE Alignment 100000 MONOPOLY ANSWER SHEET ANSWER BIN iT MC AC DEMAND MR Q C ab HIH 5. 5 H E Price (AR) MR AR-AC AR-MC Output AC MC MARKET DATA $ % 98 Cone Form MR-MC MC-AC Number FIRM COST DATA Income Tax per unit $61.71 $49.61 $34.45 $48.35 20,000 $27.26 $13.36 $36.24 -$13.89 POLICY VARIABLES $55,000 $0.00 F G hp
2) Average cost. 3) Profit per unit of output. 4) Total profit. Keep output at 20,000 hookups. 5) What is the increase in cost due to one more hookup (MC)? 6) What's the added revenue from one more hookup (MR)? 7) If one more hookup is added, what's the change in profits? 8) At an output of 20,000, should the firm be producing more or less output? [Enter more or less.] Cable company management wants to know how to maximize total profit, and what price to set. 9) What's the profit maximizing output? 10) What's the profit maximizing price? I 11) Continuing on from the last problem, what are total profits when profits are maximized? Cable company management expects consumer incomes to rise to $60,000. You must advise them on what output to sell if the increase occurs. 12) What's the new profit maximizing output? Continuing on from the last question, record the values of these variables after income rises: 13) Market price. 14) Total profits. 15A) Set all variables to their baseline values. You are visited by staff members from the cable TV regulator's office. These are government officials and you must tell them the truth about the firm's operation. Go on to 15B. The government officials want to know what output will result in the socially best amount of cable TV services. 15B) What's the socially best output? 16) What's the socially best price? 17) What are total profits when the socially best output and price are set? 24-3 MacBook Air
Transcribed Image Text:2) Average cost. 3) Profit per unit of output. 4) Total profit. Keep output at 20,000 hookups. 5) What is the increase in cost due to one more hookup (MC)? 6) What's the added revenue from one more hookup (MR)? 7) If one more hookup is added, what's the change in profits? 8) At an output of 20,000, should the firm be producing more or less output? [Enter more or less.] Cable company management wants to know how to maximize total profit, and what price to set. 9) What's the profit maximizing output? 10) What's the profit maximizing price? I 11) Continuing on from the last problem, what are total profits when profits are maximized? Cable company management expects consumer incomes to rise to $60,000. You must advise them on what output to sell if the increase occurs. 12) What's the new profit maximizing output? Continuing on from the last question, record the values of these variables after income rises: 13) Market price. 14) Total profits. 15A) Set all variables to their baseline values. You are visited by staff members from the cable TV regulator's office. These are government officials and you must tell them the truth about the firm's operation. Go on to 15B. The government officials want to know what output will result in the socially best amount of cable TV services. 15B) What's the socially best output? 16) What's the socially best price? 17) What are total profits when the socially best output and price are set? 24-3 MacBook Air
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