Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. 1.A firm's total cost schedule and the demand for its product are summarized in the table below.RevenuesQuantityProduced0 units13446WN.257CostsTotalCost$070142217297385485603MarginalCostProblem Set 3QuantityDemanded0 units123Price$155 per unit150145140135130125120TotalRevenueMarginalRevenue(i) Complete the table and use the equimarginal principle to determine the level of output that maximizes thefirm's profit. Also determine the price charged by the firm and its maximum profit level.(ii) What would happen to your answers from part (i) if the firm's total costs rose by $40?(iii) What would happen to your answers from part (i) if its costs rose by $40 per unit produced?

Costs and revenue are fundamental concepts in business and economics. Costs represent the expenses…

1. A firm's total cost schedule and the demand for its product are summarized in the table below. Revenues Quantity Produced 0 units 1 2 3 4 5 6 7 Costs Total Cost $0 70 142 217 297 385 485 603 Marginal Cost Quantity Demanded 0 units 1 3 Price $155 per unit 150 145 140 135 130 125 120 Total Marginal Revenue Revenue (1) Complete the table and use the equimarginal principle to determine the level of output that maximizes the firm's profit. Also determine the price charged by the firm and its maximum profit level. (ii) What would happen to your answers from part (1) if the firm's total costs rose by $40? (iii) What would happen to your answers from part (i) if its costs rose by $40 per unit produced?

1. A firm's total cost schedule and the demand for its product are summarized in the table below. Revenues Quantity Produced 0 units 1 2 3 4 5 6 7 Costs Total Cost $0 70 142 217 297 385 485 603 Marginal Cost Quantity Demanded 0 units 1 3 Price $155 per unit 150 145 140 135 130 125 120 Total Marginal Revenue Revenue (1) Complete the table and use the equimarginal principle to determine the level of output that maximizes the firm's profit. Also determine the price charged by the firm and its maximum profit level. (ii) What would happen to your answers from part (1) if the firm's total costs rose by $40? (iii) What would happen to your answers from part (i) if its costs rose by $40 per unit produced?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 11RQ: What is die difference between accounting and economic profit?

See similar textbooks

Similar questions

Complete the table below: Output TotalCost(RM) Totalvariablecost(RM) Totalfixedcost(RM)Averagefixedcost(RM)Averagetotalcost(RM)Marginalcost (RM) 0 505 16010 20020 25036 33058 40072 48088 580106 700130 820150 980
Text Entry Copy and paste or type your submission right here. HTML Editor В I A - I E E 3 E E X' X, =三用▼ 12pt Paragraph Quantity Total Costs 20 10 1 30 12 2 42 13 55 20 4 75 25 100 30 16 ||130 128 words MacBook Pro 国 3.
A restaurant owner is trying to decide whether tostay open at lunchtime. She has far fewer customers at lunch than at dinner, and the revenue shebrings in barely covers her expenses to buy foodand pay the staff. What do you recommend thatshe do? Explain your reasoning to her
1. ThedemandfunctionforagoodisgivenbytheequationP=a−bQwhilethetotalcost function is TC = dQ2 + eQ + f, where a, b, d, e and f are positive constants. (a) Derive the equation for profit.(b) Derive an expression for the value of Q for which profit is maximised.
Table: Spring Water Quantity(Cases) Price TotalRevenue MarginalRevenue MarginalCost AverageTotalCost Total Cost 0 $16 $0 $25 $15 $10 1 $15 $15 35.00 $35 $13 $6 2 $14 $28 20.50 $41 $11 $4 3 $13 $39 15.00 $45 $9 $2 4 $12 $48 11.75 $47 $7 $3 5 $11 $55 10.00 $50 $5 $3 6 $10 $60 8.83 $53 $3 $5 7 $9 $63 8.29 $58 $1 $9 8 $8 $64 8.38 $67 Reference: Ref 15-12 Table: Spring Water Table: Spring Water. The table shows the demand and cost data for a firm in a monopolistically competitive industry producing drinking water from underground springs. The profit-maximizing output is _____ cases. Select one: a. 7 b. 5 c. 6 d. 8
Use the diagrams to answer the following questions. Price and cost 20- 18 16- 14- 12 10 8 6 4 2+ o Market 1 488888 MC NO₂ MR 40 55 an in en nn minn Price and cost 20- 18- 16- 14 12- 10- 8- 6- 4- 2- 0 Market 2 0000000 MC NMR Annnnn in ED ORA on noinn If the firm wants to maximize profits, what price will it charge in Market 1, and what quantity will it sell? The firm will charge a price of $ using integers). Q and will sell a quantity of units. (Enter numeric responses
6. Elasticity and total revenue I The following graph shows the daily demand curve for bippitybops in Vancouver. On the following graph, use the green rectangle (triangle symbols) to shade the area representing total revenue at various prices along the demand curve. Notice that when you click on the rectangle, the area is displayed. Note: You will not be scored on any changes made to this graph. PRICE (Dollars per bippitybop) 240 220 200 180 160 140 120 100 80 60 40 20 0 0 6 12 ** + 48 B 18 24 30 36 QUANTITY (Bippitybops per day) Demand 54 80 72 Total Revenue ?
A grocery shop is owned by Mr. Moore and has the following statement of revenues and costs: gnideini Revenues edua leoin $250,000 lanignen da $6,000 e odi vd $75,000 ed liw vig Supplies 3w (o Electricity del bas deaiq $25,000 Employee salaries Mr. Moore's salary $80,000 ACu ond Mr. Moore always has the option of closing down his shop and renting out the land for $100,000. Also, Mr. Moore himself has job offers at a local supermarket at a salary of $95,000 and at a nearby restaurant at $65,000. He can only work one job, though. What are the shop's accounting costs? What are Mr. Moore's economic costs? Should Mr. Moore shut down his shop?
4. Elasticity and total revenue The following graph shows the daily demand curve for bippitybops in Denver. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 120 110 100 Total Revenue 90 B0 70 50 40 30 20 10 Demand 10 20 30 40 50 70 90 100 110 120 QUANTITY (Bippitybops) PRICE (Dollars per bippitybop)
What is the marginal cost associated with producing three units of the contral variable, O (identify point E in the tablej? 36 Total Total Costs Benefits Benefit Net Marginal Marginal Narginal Net Bеnefit Control variable Benefits Cost MB(0) MC (Q) MND (0) Sepped B(Q) C(0) 900 100 800 900 100 800 2 1,700 300 800 200 600 2,400 600 1,800 700 E 400 4 1,000 2,000 600 400 200 3,500 1,500 2,000 500 500 600 1,800 1,400 3,900 2,100 D -200 4,200 4,400 2,800 300 700 -400 200 100 800 800 -600 4,500 4,500 900 -800 10 4,500 5,500 -1,000 1,000 -1,000 Mutiple Choice 50 100 200 300
What is the total cost associated with producing eight units of the control varlable, a (identify point B in the tablej? 34 Marginal Harginal Harginal Net Bеnefit Control Total Net Costs Benefits Benefit Total variable Benefits Cost Sepped B(Q) C(Q) MB(0) MC(0) MND (0) 900 100 800 900 100 800 2 1,700 300 800 200 600 2,400 600 1,800 700 E 400 1,000 1,500 400 500 2,000 2,000 1,800 1,400 4 600 200 3,500 500 3,900 2,100 D 600 -200 4,200 4,400 4,500 2,800 300 700 -400 800 200 800 -600 4,500 100 900 -800 10 4,500 5,500 -1,000 1,000 -1,000 Mutiple Choice 3,000 3,600 3,800 4,200
How do we calculate the total amount of pagecant costs, price profit, profit make up and selling costs