Question

In: Economics

Complete the following cost and revenue schedule Average Quantity Total Marginal &nbsp

Complete the following cost and revenue schedule

Average

Quantity Total Marginal Total Marginal Total

Price Demanded Revenue Revenue Cost Cost Cost

$20 0 $8

$18 1 $14

$16 2 $22

$14 3 $32

$12 4 $44

$10 5 $58

$8 6 $74

$6 7 $92

$4 8 $112

$2 9 $147

a. Graph the demand, MR, and MC curves.

b. At what rate of output are profits maximized within this range?

c. What are the values of MR and MC at the profit-maximizing rate of output?

d. What are total profits at that output rate?

e. If a competitive industry confronted the same demand and costs, how much output is produced in the short run?

f. What would happen to long-run price in perfect competition?

Expert Solution

Rahul Sunny answered 1 year ago

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