Estimated total time cost and total revenue functions: TTC = 120 + 2N + 0.0067N3 and TTR = 120 + 0.6N2 – 0.02N3 where N is time in ten-day feeding units. Profit = TTR - TTC

a. Calculate Profit maximizing N

b.Find Average profit

c. Average profit maximizing N

Consider a fishery characterized by the following total cost (TC) and total revenue (TR) curves as a function of total effort (E): TC = 12E and TR = 32E – E 2 , Differentiating these functions yields the marginal cost (MC) and marginal revenue (MR) curves: MC = 12 and MR = 32 – 2E.

a. Draw a graph depicting total costs and total revenues as a function of effort in the fishery. At what effort level are total revenues maximized? (5 points)

b. With open access to the fishery, what are the equilibrium levels of effort and total profit? (5 points)

c. What level of effort maximizes total profits in the fishery? What are total profits at this level of effort? (5 points)

90) The difference between a perfectly competitive firm's total revenue and its total cost is

A) always zero.

B) greatest at the profit-maximizing level of output.

C) always positive.

D) always negative.

91) Currently kidneys are allocated based on the needs of each perspective recipient, their blood type, and the urgency of their case. An alternative way to allocate kidneys is to go by the order in which patients were placed on the waiting list. In that case, the allocation of resources is made using

A) personal characteristics.

B) market price.

C) auction.

D) first-come, first-served

93) Suppose the price of a football is $20.00 and the price of a basketball is $10.00. The ________ of a football is ________.

A) relative price; 1/2 basketball per football

B) relative price; 2 basketballs per football

C) opportunity cost; $20.00

D) opportunity cost; $10.00

94) The supply curve for CDs shows the

A) maximum price that consumers are willing to pay if a given quantity of CDs is available.

B) maximum price that producers must be offered to get them to produce a given quantity of CDs.

C) minimum price that producers must be offered to get them to produce a given quantity of CDs.

D) minimum price that consumers are willing to pay if a given quantity of CDs is available.

A firm has the total variable cost function: ??? = 2? + 2?^2 and total fixed cost of $20. Suppose the market demand is: ? ? = 20 − ?.

a. What are the firm’s profit maximizing output and price if it is a monopolist? How much is its profit at this output level? How much is consumer and producer surplus? (Hint: use a diagram to illustrate the market),

b. Suppose the government implements a tax of $3 tax unit sold. What are the firm’s profit maximizing output and price? How much is its profit at this output level? Will the firm continue to operate in the short run? In the long run?

c. What would the equilibrium price and quantity be in a competitive industry (pre-tax)? How much is consumer and producer surplus? What is the deadweight loss from the monopoly?

If possible, calculate total profits given a price of $80, an average total cost of $30, and an output of 5.

If price is above average total cost, is the firm making a profit or loss and should it operate or shut down?

Suppose that a firm is making a profit of $50 million operating at 50,000 units of output. At that level of output, marginal revenue is $1,000 and marginal cost is $1,200. What, if anything, should the firm do? Explain.

What does the marginal revenue curve of a perfectly competitive firm look like?

If a business has revenue of $100,000, explicit costs of $30,000, and implicit costs of $20,000, what are the economic profits?

What kind of economic profits will a perfectly competitive firm make in the long run equilibrium?

Given the data shown in the table for​ a​ monopolist:

1. Complete the​ table​ -- calculate​ ​MC, Total Revenue and MR for all output levels.

2. When the output level is 6​ units​: ​  

a. Should the​ monopolist​ increase, decrease or leave​ output​ unchanged? ​ 

b. Is MR​ greater​ than,​ less​ than, or equal​ to​ MC?

3. Identify the profit maximizing P and Q.

4. What is the​ ​per-unit profit when​ Q​ =​ 2?

5. What is the total profit at​ the​ profit-maximizing​ solution?

6. Suppose barriers to entry overtime​ significantly​ decrease. Will the profit maximizing price​ increase, decrease or stay the​ same?

The table shows total cost and total revenue information for a perfectly (or purely) competitive firm.

Firms earning a loss will sometimes shut down in the short run. What quantity will the firm produce if it shuts down in the short run?

unitsunits

What will the profits be if this firm shuts down?

$

Firms sometimes prefer to minimize losses by continuing to operate in the short run. What quantity will the firm produce to minimizes losses in the short run?

unitsunits

If this firm chooses to operate, what will its profits equal? Enter a negative number for a loss.

$

If the cost and revenue numbers in the table will continue forever (permanently), is it better for this firm to

shut down immediately.

continue to operate indefinitely.

continue to operate in the short run, and exit the market in the long run.

Consider total cost and total revenue, given in the following table:

In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.)

In order to maximize profit, how many units should the firm produce? Check all that apply.

4

5

6

7

In the previous table, enter marginal revenue and marginal cost for each quantity.

On the following graph, use the green points (triangle symbol) to graph the marginal-revenue curve, then use the orange points (square symbol) to plot the marginal-cost curve. (Note: Be sure to plot from left to right and to plot between integers. For example, if the marginal cost of increasing production from 1 unit to 2 units is $5, then you would plot a point at (1.5, 5).)

Marginal RevenueMarginal Cost01234567109876543210Revenue and CostsQuantity

The marginal-revenue curve and the marginal-cost curve cross at a quantity   .

This firm   in a competitive industry, because marginal revenue is   as quantity increases.

True or False: The industry is in a long-run equilibrium.

True

False

When you have the total cost (TC) curve and the total revenue (TR) curve of a company, think about a situation with a single break-even point an another situation with two break-

even points and clearly explain what cause the difference is.

Think about a linear programming model with multiple optimal solutions and clearly explain what cause this to happen? A graph cannot be your explanantion.

8. Consecutive losses of Ocean Park since 2016 and steadily losing visitors expose the park to the risk of forced closure in June if without the rescue money from the government.  Basing on the economic concepts/theories that you have learnt in the course and the information given here, explain why it has to close?