Question
In: Economics
Table 15-8 The following table provides information on the price, quantity, and average total cost for...
Table 15-8 The following table provides information on the price, quantity, and average total cost for a monopoly.
| Price | Quantity | Average Total Cost |
| $24 | 0 | --- |
| $18 | 5 | $14.00 |
| $12 | 10 | $11.00 |
| $6 | 15 | $10.67 |
| $0 | 20 | $11.00 |
Refer to Table 15-8. What is the maximum profit that the monopolist can earn?
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Solutions
Expert Solution
Option (A).
Profit = Q x (P - ATC)
| P | Q | ATC | PROFIT |
| 24.00 | 0.00 | --- | |
| 18.00 | 5.00 | 14.00 | 20 |
| 12.00 | 10.00 | 11.00 | 10 |
| 6.00 | 15.00 | 10.67 | -70.05 |
| 0.00 | 20.00 | 11.00 | -220 |
Profit is highest (= 20) when Q = 5 units.
Rahul Sunny answered 3 years agoRelated Solutions
Quantity Total Cost Total Fixed Cost Total Variable Cost Average Fixed Cost Average Total Cost Average...
Quantity
Total Cost
Total Fixed Cost
Total Variable Cost
Average Fixed Cost
Average Total Cost
Average Variable Cost
Marginal Cost
0
30
1
75
2
150
3
255
4
380
5
525
6
680
7
840
8
1010
9
1200
Given the quantity and total cost, calculate for total fixed
cost, total variable cost, average fixed cost, average total cost,
average variable cost, and marginal cost.
Excel formulas would be nice but not required.
The table shows the quantity produced and the total, average, variable, cost, and marginal costs for a firm. Complete the table.
Unit 9— Cost, Revenue, and ProfitThe table shows the quantity produced and the total, average,
variable, cost, and marginal costs for a firm. Complete the
table.QuantityTotal CostVariable CostFixed CostAverage Total CostAverage Variable CostAverage Fixed CostMarginal Cost00N/AN/AN/AN/A110050502953180130354502052251751025626121174983853359450106855185Graph the total cost, variable cost, and fixed cost curves.Assume the price is $50, draw the total revenue curve and
identify the profit maximizing output level and the maximum
profitGraph the average total cost, average variable, average fixed,
and marginal cost curvesAssume the price is...
16. Total profit for a firm is calculated as a. (price minus average cost) times quantity...
16. Total profit for a firm is
calculated as
a.
(price minus average cost) times quantity of output.
b.
total revenue minus total cost.
c.
Both a and b.
d.
None of the above.
17. In the short run, if the price is
less than average variable cost, a firm operating in a competitive
market will
a.
shutdown.
b.
exit.
c.
increase the price.
d.
increase the quantity.
18. When a restaurant stays open for
lunch service even though few...
Complete the following cost and revenue schedule Average Quantity Total Marginal  
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....
For each quantity, calculate average variable cost, average total cost, and marginal cost.
Variable
TotalQuantity
Cost
Cost 0
cups
Rs.0
Rs.29
1
9
39
2
24
54
3
44
74
4
69
99
5
99
129
6
134
164For each quantity, calculate average variable cost, average
total cost, and marginal cost.Plot all three curves on the same graph. Discuss the relationship between marginal-cost curve and
average-total-cost curve.
8. The table below shows the weekly marginal cost (MC) and average total cost (ATC) for...
8. The table below shows the weekly marginal cost (MC) and
average total cost (ATC) for Buddies, a perfectly competitive firm
that produces novelty ear buds in a competitive market. The market
price of ear buds is $6.00 per pair.
Quantity of Ear buds
MC ($)
ATC ($)
5
-
9
10
2
5.5
15
2.44
4.48
20
3.56
4.25
25
4.5
4.3
30
5.02
4.42
35
5.96
4.64
40
8.56
5.13
Instructions: In part a, enter your answer as...
quantity of broomsticks fixed cost variable cost total cost average fixed cost average variable cost average...
quantity of broomsticks
fixed cost
variable cost
total cost
average fixed cost
average variable cost
average total cost
marginal cost
marginal product
0
10
$13
$38
22
$28
32
$70
41
$64
50
$110
59
$108
65
$133
70
$185
how do I fill in the blanks?
as well as graph the three average cost curves and the marginal
cost curve.
4) Consider total cost and total revenue given in the following table: Quantity 0 1 2...
4) Consider total cost and total revenue given in the following
table:
Quantity 0 1 2 3 4 5 6 7 7
Total Cost $120 150 160 170 190 230 300 410 610
Total Revenue $0 70 140 210 280 350 420 490 560
A. Create a table that includes the fixed cost at each level of
output as well as the variable cost
at each level of output. If capital is fixed and the firm uses
10 units of...
QUESTION 8 For a monopolist: price equals average total cost. price is above marginal revenue. marginal...
QUESTION 8
For a monopolist:
price equals average total cost.
price is above marginal revenue.
marginal revenue equals zero.
marginal cost equals zero.
QUESTION 9
An example of price discrimination is the price charged for:
an economics textbook sold at a campus bookstore.
gasoline.
theater tickets that offer lower prices for seniors.
a postage stamp.
QUESTION 10
There is only one gas station within hundreds of miles. The
owner finds that if she charges $3 a gallon, she sells 199...
Questions 15-20 are based on the following table of cost production at Betty's Bakery Quantity of...
Questions 15-20 are based on the following table of cost
production at Betty's Bakery
Quantity of Cakes
Fixed Cost
Variable Cost
Total Cost
Average Fixed Cost
AverageVariableCost
AverageTotalCost
MarginalCost
1
$13
$38
2
$28
3
$70
4
$64
5
$110
6
$108
7
$133
8
$185
15. What is the fixed cost of production at Betty's Bakery?
a) $12
b) $20
c) $25
d) $51
16. What is the variable cost of producing 5 cakes at Betty's
Bakery?
a) $64...
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