A company produces at an output level where marginal cost is equal to marginal revenue and has the following revenue and cost levels:
Total revenue = $1,450
Total cost = $1,500
Total variable cost = $1,300
What would you suggest?

A monopolist faces a single market with the following demand curve and total cost

P = 180 – 2.5Q and TC = 2Q2

i. Determine the quantity of output that it should produce and the price it should charge to maximize profit. Then, calculate the profit.

In a slow year, Deutsche Burgers will produce 2 million hamburgers at a total cost of $3.5 million. In a good year, it can produce 4 million hamburgers at a total cost of $4.5 million.

1. What are the fixed costs of hamburger production? (Enter your answer in millions rounded to 1 decimal place.)
2. What are the variable costs when the firm produces 2 million hamburgers? (Enter your answer in millions.)
3. What is the average cost per burger when the firm produces 1 million hamburgers? (Round your answer to 2 decimal places.)
4. What is the average cost when the firm produces 2 million hamburgers?

A firm produces 20 units of output at a market price of $5, a marginal cost of $5, and an average cost of $3. the firm's economic profit is $ _ and the firm _ maxmimizing it's economic profit

Patty and Ben operate a small company that produces bicycles. Their fixed cost is $ 4000
per month. They can hire workers for $ 4000 per month. Their monthly production function for
bicycles is as given in the following table:
Quantity of Labour Quantity of Bicycles
0 0
1 10
2 30
3 60
4 120
5 170
6 200
7 220
8 230
a.) For each quantity of labour calculate the following: total product (TP), marginal product (MP),
average productivity (AP), average variable cost (AVC), average fixed cost (AFC), average total
cost (ATC), and marginal cost (MC).
b.) On one diagram draw the MP and AP
c.) On one diagram draw the AVC, ATC, and MC
d.) At what point does Patty and Ben experience decreasing marginal productivity? At what level of are ATC minimized?

Suppose that a company has estimated the average variable cost of producing its product to be $10. The firm’s total fixed cost is $100,000. If the company produces 1,000 units and its pricing strategy is to add a 35 percent markup, what price would the company charge?

A seller produces output with a constant marginal cost MC = 2. Suppose there is one group of consumers with the demand curve P1 = 16 - Q1, and another with the demand curve P2 = 10 - (1/2)Q2.

a) If the seller can discriminate between the two markets, what prices would she charge to each group of consumers?

b) If the seller cannot discriminate, but instead must charge the same price P1 = P2 = P to each consumer group, what will be her profit-maximizing price?

c) Which, if any, consumer group benefits from price discrimination?

d) If instead P1 = 10 - Q1, does either group benefit from price discrimination?

In a periodic inventory system, the formula used in computing the cost of goods sold may be summarized as follows:

Select one:

A.

Beginning inventory + purchases - net sales.

B.

Balance in the Cost of Goods Sold account, less the balance in the Inventory Shrinkage account.

C.

Beginning inventory + purchases - ending inventory.

D.

Ending inventory + purchases - net sales.