Suppose Andy sells basketballs in the perfectly competitive basketball market. His output per day and costs are as follows: Output per Day (Q) 0 1 2 3 4 5 6 7 68 9 Total Cost (TC) $10.00 $20.50 $24.50 $28.50 $34.00 $43.00 $55.50 $72.00 $93.00 $119.00 1) Make a table with Quantity (Q), Total Cost (TC), Fixed Cost (FC), Variable Cost (VC), Average Total Cost (ATC), Average Variable Cost (AVC), Marginal Cost (MC), and Marginal Revenue (MR) on it (using the Long-Run Equilibrium Price). 2) To maximize profits, how many basketballs will Andy produce? Identity the profit maximizing Quantity (Q*), Price (P*), and Profit (*).

Suppose Andy sells basketballs in the perfectly competitive basketball market. His output per day and costs are as follows: Output per Day (Q) 0 1 2 3 4 5 6 7 68 9 Total Cost (TC) $10.00 $20.50 $24.50 $28.50 $34.00 $43.00 $55.50 $72.00 $93.00 $119.00 1) Make a table with Quantity (Q), Total Cost (TC), Fixed Cost (FC), Variable Cost (VC), Average Total Cost (ATC), Average Variable Cost (AVC), Marginal Cost (MC), and Marginal Revenue (MR) on it (using the Long-Run Equilibrium Price). 2) To maximize profits, how many basketballs will Andy produce? Identity the profit maximizing Quantity (Q), Price (P), and Profit (*).

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 11SQP

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