Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Textbook Question
Chapter 8, Problem 4E
Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C = 200 + 2q2, where q is the level of output and C is total cost. (The marginal cost of production is 4q; the fixed cost is $200.)
- a. If the price of watches is $100, how many watches should you produce to maximize profit?
- b. What will the profit level be? c. At what minimum price will the firm produce a positive output?
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Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by
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If the price of a watch is $80, how many watches should you produce to maximize profits?
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What will the profit level be?
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At what minimum price will the firm produce a positive output?
In the short run, the firm will produce if price is greater than $
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q = 20 - P
CT (q) = q² - 4q
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Suppose you are an economist working in a watch factory operating in a competitive market. The cost is given by: CT = 200 + Q2, where Q is the level of production and CT is the Total Cost, the CMg (marginal cost) of production is 2Q. The Fixed Cost of production is $ 150.
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Chapter 8 Solutions
Microeconomics (9th Edition) (Pearson Series in Economics)
Ch. 8 - Prob. 1RQCh. 8 - Prob. 2RQCh. 8 - Prob. 3RQCh. 8 - Prob. 4RQCh. 8 - Prob. 5RQCh. 8 - Prob. 6RQCh. 8 - Prob. 7RQCh. 8 - Prob. 8RQCh. 8 - Prob. 9RQCh. 8 - Prob. 10RQ
Ch. 8 - Prob. 11RQCh. 8 - Prob. 12RQCh. 8 - Prob. 13RQCh. 8 - Prob. 14RQCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Suppose you are the manager of a watchmaking firm...Ch. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - A sales tax of 1 per unit of output is placed on a...Ch. 8 - Prob. 15E
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