Question
In: Economics
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 total cost
- Compute the total revenue
- compute profit or loss at the maximizing output level
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
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why is the level of output at which marginal revenue equals
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Why is the level of output at which marginal revenue equals marginal cost the profit maximizing...
Why is the level of output at which marginal revenue
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If a profit-maximizing firm is producing an output level
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Question 1 Output total cost marginal cost fixed cost average cost Total revenue average revenue Marginal...
Question 1
Output
total cost
marginal cost
fixed cost
average cost
Total revenue
average revenue
Marginal
revenue
0
10
0
1
16
20
2
26
40
3
40
60
4
60
80
5
88
100
6
120
120
A) Complete the missing data on the table
B) What is the selling price of a laptop case explain your
answer
c) What is the profit maximizing level of output for this firm
explain your answer
d) create a graph using three...
In the following market, Workers Output Marginal Product Total Cost Average Total Cost Marginal cost 0...
In the following market,
Workers
Output
Marginal Product
Total Cost
Average Total Cost
Marginal cost
0
0
1
20
2
50
3
90
4
120
5
140
6
150
7
155
Fill the column for marginal product. Can you explain
diminishing marginal product based on those numbers?
A worker cost $45 a day, and the firm has fixed cost of $80.
Use this information to fill in the column for total cost.
Fill in the column for average total cost....
For competitive firms, they set marginal cost equal to market price at profit-maximizing level of output....
For competitive firms, they set marginal cost equal to market
price at profit-maximizing level of output.
In the short run, marginal revenue curve faced by a competitive
firm is downward-sloping.
Competitive firms always produce a positive amount of output in
the short run (q > 0).
Competitive firms earn zero economic profit in the long run
equilibrium.
All these are True False Questions
Output tables/day Total cost Variable cost Average Total Cost Average variable cost Marginal Cost 0 $250...
Output
tables/day
Total cost
Variable cost
Average Total Cost
Average variable cost
Marginal Cost
0
$250
1
350
2
430
3
490
4
570
5
670
6
820
What are the fixed costs of production measured in
dollars?
For 6 tables, what is the average fixed cost, average variable
cost, and the marginal cost?
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13) T/F If the marginal revenue is less than the marginal cost,
a profit-maximizing price taker should increase its output.14) T/F When a firm is operating in a price-taker market,
marginal revenue is always less than the market price.15) T/F When an economist says a firm is earning zero economic
profit, this implies that the firm will likely have to declare
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Please answer the following questions. (True/False) 1. Price will always exceed marginal cost for the profit-maximizing...
Please answer the following questions. (True/False)
1. Price will always exceed marginal cost for the
profit-maximizing monopolist, or any price-setter firm for that
matter.
2. A price-setting firm prefers to operate in the inelastic
portion of its demand curve because total revenue increases when
price is increased.
3. So long as a monopolist finds itself in the situation where
price is greater than average fixed cost at the profit-maximizing
(loss-minimizing) level of output, the firm should continue to
operate to...
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