Fill in the following table for a firm in a perfectly competitive industry. Quantity Price TR TC Profit ATC MR MC 5 $100 $500 $300 6 $100 $330 $100 $30 7 $100 $420 8 $100 $520 9 $100 $630 What is the highest profit possible? What is the profit maximizing price? What is the profit maximizing level of output? (Pick one if there are multiple levels of output with the same profit.) What is the average total cost at profit maximization? (Use the same Q you used in c.) What is the profit per unit at profit maximization? How you do know that this is a table for a perfectly competitive firm? In the table above, if you only had the columns Quantity, MR, and MC, explain how you still be able to find the profit-maximizing level of output.
Fill in the following table for a firm in a perfectly competitive industry. Quantity Price TR TC Profit ATC MR MC 5 $100 $500 $300 6 $100 $330 $100 $30 7 $100 $420 8 $100 $520 9 $100 $630 What is the highest profit possible? What is the profit maximizing price? What is the profit maximizing level of output? (Pick one if there are multiple levels of output with the same profit.) What is the average total cost at profit maximization? (Use the same Q you used in c.) What is the profit per unit at profit maximization? How you do know that this is a table for a perfectly competitive firm? In the table above, if you only had the columns Quantity, MR, and MC, explain how you still be able to find the profit-maximizing level of output.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
- Fill in the following table for a firm in a
perfectly competitive industry.
|
Quantity |
Price |
TR |
TC |
Profit |
ATC |
MR |
MC |
|
5 |
$100 |
$500 |
$300 |
|
|
|
|
|
6 |
$100 |
|
$330 |
|
$100 |
$30 |
|
|
7 |
$100 |
|
$420 |
|
|
|
|
|
8 |
$100 |
|
$520 |
|
|
|
|
|
9 |
$100 |
|
$630 |
|
|
|
|
- What is the highest profit possible?
- What is the profit maximizing price?
- What is the profit maximizing level of output? (Pick one if there are multiple levels of output with the same profit.)
- What is the
average total cost at profit maximization? (Use the same Q you used in c.)
What is the profit per unit at profit maximization?
How you do know that this is a table for a perfectly competitive firm?
In the table above, if you only had the columns Quantity, MR, and MC, explain how you still be able to find the profit-maximizing level of output.
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