Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 21, Problem 7QP
To determine
Explain whether earning zero economic profit is not as bad as it sounds.
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What would be the value of economic profit if explicit cost is $200, implicit cost is $150 and total revenue is $800
Use the cost table below to find the following marginal costs.
Output
quantity
Total variable
Total fixed
Total
cost
cost
cost
20
80
60
140
40
140
60
200
60
210
60
270
80
300
60
360
100
420
60
480
120
600
60
660
140
840
60
900
What is the marginal cost when output is 20? $
What is the marginal cost when output is 80? $
What is the marginal cost when output is 120? $ |
A firm has a fixed production cost of $4000. For the first 100 units of production, the firm has a marginal cost of $50 per unit produced. Producing more than 100 units has a marginal cost of $70 per unit produced. The firm cannot produce more than 150 units.
How much does it cost to produce at q=0? at q=50? at q=100? at q=125? at q=150?
Graph the firm’s marginal cost function
Chapter 21 Solutions
Economics (MindTap Course List)
Ch. 21.2 - Prob. 1STCh. 21.2 - Prob. 2STCh. 21.2 - Prob. 3STCh. 21.2 - Prob. 4STCh. 21.3 - Prob. 1STCh. 21.3 - Prob. 2STCh. 21.3 - Prob. 3STCh. 21.4 - Prob. 1STCh. 21.4 - Prob. 2STCh. 21.4 - Prob. 3ST
Ch. 21.4 - Prob. 4STCh. 21.5 - Prob. 1STCh. 21.5 - Prob. 2STCh. 21.5 - Prob. 3STCh. 21 - Prob. 1QPCh. 21 - Prob. 2QPCh. 21 - Prob. 3QPCh. 21 - Prob. 4QPCh. 21 - Prob. 5QPCh. 21 - Prob. 6QPCh. 21 - Prob. 7QPCh. 21 - Prob. 8QPCh. 21 - Prob. 9QPCh. 21 - Prob. 10QPCh. 21 - Prob. 11QPCh. 21 - Prob. 12QPCh. 21 - Prob. 13QPCh. 21 - Prob. 14QPCh. 21 - Prob. 15QPCh. 21 - Prob. 16QPCh. 21 - Prob. 17QPCh. 21 - Prob. 18QPCh. 21 - Prob. 19QPCh. 21 - Prob. 1WNGCh. 21 - Prob. 2WNGCh. 21 - Prob. 3WNGCh. 21 - Prob. 4WNGCh. 21 - Prob. 5WNGCh. 21 - Prob. 6WNGCh. 21 - Prob. 7WNGCh. 21 - Prob. 8WNGCh. 21 - Prob. 9WNG
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- What happens to the average fixed cost, when the output of a firm increases.arrow_forwardThe total cost of producing mobile phones is TC = 10 + 70q + 30q^2 l. Calculate the marginal cost.arrow_forwardDanielle decides to withdraw her savings of $70,000 and invest in starting her own clothing business. She normally earns $3,000 in interest from her savings. If Danielle earned an accounting profit of $60,000 last year, what was her economic profit?arrow_forward
- Kristin runs a rare book store. Last year, she earned $35,000 in revenue and had explicit costs of $8,000. Kristin could have made $29,750 working for a security company and received an additional $5,000 if she had used the company's inputs in a different way. Calculate Kristin's economic profit. $arrow_forwardexplain why the lower marginal cost firm can never produce the same as the high marginal cost firmarrow_forwardExplicit cost is = $900 Implicit cost = $333 Find the economic profit???arrow_forward
- Nimbus, Inc., makes brooms and then sells them door-to-door. Here is the relationship between the number of workers and Nimbus' output during a given day. I have completed the first two rows. Workers Output Marginal Total Average Marginal Product Cost Total Cost Cost $200 1 20 20 $300 $15 $5 2 50 30 $400 $8 $3.33 3 90 40 4 120 30 140 20 150 10 7 155 5arrow_forwardFind the marginal cost, marginal revenue, and marginal profit functions. C(x) = 4x2; R(x) = x3 + 5x + 14 marginal cost marginal revenue marginal profit Find all values of x for which the marginal profit is zero. Interpret your answer. (Enter your answers as a comma-separated list.) x =arrow_forwardWhat happens to fixed cost as the quantity produced increases?arrow_forward
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