Question
In: Economics
Consider that your profit-maximizing quantity of 400 can be produced at an average cost per unit...
Consider that your profit-maximizing quantity of 400 can be
produced at an average cost per unit of $10 and sold for a market
price of $16.
What is your profit per
unit? $
What is your total profit? $
Solutions
Expert Solution
Profit
per unit is equal to $6
Calculated as Market price per unit - Average cost per unit ($16-$10=$6)
Total profit is $ 2,400
If the firm sells 400 units
Rahul Sunny answered 2 years agoRelated Solutions
1.) At current output a profit maximizing competitive firm gets $8 per unit produced and has...
1.) At current output a profit maximizing competitive firm gets
$8 per unit produced and has average total costs of $12. When the
market price is $8, the firm's marginal cost curve crosses its
marginal revenue curve where Q=120 units.
a. Draw two graphs side-by-side: On the left side, sketch a
representation of the market equilibrium (i.e. supply, demand,
market equilibrium quantity and market equilibrium price). On the
right side, sketch a representation of the individual competitive
firm's cost curves...
1.) At current output a profit maximizing competitive firm gets $8 per unit produced and has...
1.) At current output a profit maximizing competitive firm gets
$8 per unit produced and has average total costs of $12. When the
market price is $8, the firm's marginal cost curve crosses its
marginal revenue curve where Q=120 units.
a. Draw two graphs side-by-side: On the left side, sketch a
representation of the market equilibrium (i.e. supply, demand,
market equilibrium quanity and market equilibrium price). On the
right side, sketch a representation of the individual competitive
firm's cost curves...
A laptop manufacturer can produce laptops at a cost of $400 per unit and incurs a...
A laptop manufacturer can produce laptops at a cost of $400 per
unit and incurs a fixed cost of $100,000 which is independent of
the quantity produced. Currently the selling price of a laptop is
$1400 and the resulting demand (or quantity sold, since both are
the same) is 220,000 units. It is also known that a $2 decrease in
price will increase the demand by 200 units. Assume the demand
function is linear and fully known.
A. What is...
In a monopoly market, how does the profit-maximizing quantity compare to revenue-maximizing quantity? How does the...
In
a monopoly market, how does the profit-maximizing quantity compare
to revenue-maximizing quantity? How does the profit-maximizing
price compare to revenue-maximizing price? Why?
consider 2 profit-maximizing firms that behave as quantity setters and setter and supply a homogeneous product...
consider 2 profit-maximizing firms that behave as quantity
setters and setter and supply a homogeneous product . market demand
is P=20-Q . Total cost of each firm are
CCqi1= 1/2qi^2
a) calculat the equilibrium quantities and the profit of each
firm
b)suppose the two firms play a trigger strategy but firm 1
decides to cheat on the cartel agreement. what quantity would it
set ? what would its profits be in the the period that it
defects?
c) for what...
The marginal cost of the production is always 13.00 and the profit maximizing output, average a total cost is $20.00
The following table shows a demand schedule facing a
monopolist.
Quantity:
0 1 2 3 4 5 6 7 8 9 10
Prices: 25 25 24 23 22 21 20 19 18
17 16
The marginal cost of the production is always 13.00 and the
profit maximizing output, average a total cost is $20.00
What is the profit maximizing (or loss minimizing) output for
this?
What is the price at which that output will sell in the
market?
Compute the...
Determine the profit maximizing quantity and profit levels; and then graph (in general form) the outcomes...
Determine the profit maximizing quantity and profit levels; and
then graph (in general form) the outcomes for the production
function ( standard form with q(K,L) curve ) , cost/revenue
functions (with MC, AC, and P curve/line) and profit function (
profit (q) curve ) for the following all graphs have to display q*:
1. C(q)=1000+q^2, P=10000 2. C(q)=1000+4q^3, P=10000 3.
C(q)=1000+q^1.5, P=10000 4. Explain the differences between your
outcomes and give a plausible reason for the difference between 1
&...
Ted's Sleds produces sleds at an average variable cost per unit of $41.18 when production quantity...
Ted's Sleds produces sleds at an average variable cost per unit
of $41.18 when production quantity is 1,250 units. When production
increases to 1,251 units the average variable cost declines to
$41.16. What is the minimal price that Ted's Sleds can charge for
the 1,251st sled without affecting net profits?
Ted's Sleds produces sleds at an average variable cost per unit of $41.18 when production quantity...
Ted's Sleds produces sleds at an average variable cost per unit
of $41.18 when production quantity is 1,250 units. When production
increases to 1,251 units the average variable cost declines to
$41.16. What is the minimal price that Ted's Sleds can charge for
the 1,251st sled without affecting net profits?
Select one:
a. $15.16
b. $14.16
c. $13.89
d. $14.37
e. $16.16
1. As the quantity produced goes to infinity, the average variable cost curve will
1. As the quantity produced goes to infinity, the average
variable cost curve will(a) go to zero. (b) stay constant. (c) approach the average
total cost curve. (d) None of the above answers are correct.2. In our model of a competitive firm’s problem, the firm wants
to(a) maximize revenue by choosing quantity. (b) maximize profit
by choosing quantity. (c) minimize cost by choosing quantity. (d)
maximize profit by choosing market price.3. Suppose you must pay a $40 fee for a...
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