microeconomics

posted by .

consider total cost and total revenue given in the table bellow:
quantity total cost total revenue
0 $8 0
1 $9 8
2 $10 16
3 $11 24
4 $13 32
5 $19 40
6 $27 48
7 $37 56
a. Calculate profit for each quantity. How much should the firm produce to maximize profit?
b. Calculate marginal revenue and marginal cost for each quantity. Graph them. (Hint: Put the points between whole numbers. For example, the marginal cost between 2 and 3 should be graphed at 2 1/2.)
At what quantity do these curves cross? How does this relate to your answer to part (a)?
c. Can you tell whether this firm is in a competitive industry? If so, can you tell whether the industry is in a long-run equilibrium?

  • microeconomics -

    please i need your help ^_^

    quantity 0 1 2 3 4 5 6 7
    total cost 8 9 10 11 13 19 27 37
    total revenue 0 8 16 24 32 40 48 56

  • microeconomics -

    An Excel spreadsheet is very helpful for these kinds of problems.

    Always always always, maximize where MC=MR.
    So calculate marginal cost and marginal revenue schedules. Going from 0 to 1 unit, costs went from 8 to 9, so MC here is 1. (Take the hint and MC at 1/2 is 1). Going from 0 to 1 unit, total revenues went from 0 to 8, so TR is 8.
    Repeat for the remaining units of production -- find where MC=MR.

    c) Since MR is constant, the firm must be in a competitive industry. I don't think there is enough info to determine whether the industry in in a long-run equilibrium

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. microeconomics

    Just when you really, really want an ice cream cone, the price is rising. But it isn't summertime gouging by manfacturers. The cost of milk fat, the principal ingredient in ice cream, jumped 71% druing the past 6 months to 2.22 at …
  2. Economics

    . Consider total cost and total revenue given in the table below: QUANTITY 0 1 2 3 4 5 6 7 Total cost $8 $9 $10 $11 $13 $19 $27 $37 Total revenue 0 8 16 24 32 40 48 56 a. Calculate profit for each quantity. How much should the firm …
  3. Economics

    6. Consider total cost and total revenue given in the table below: QUANTITY 0 1 2 3 4 5 6 7 Total cost $8 $9 $10 $11 $13 $19 $27 $37 Total revenue 0 8 16 24 32 40 48 56 a. Calculate profit for each quantity. How much should the firm …
  4. Economics

    6. Consider total cost and total revenue given in the table below: QUANTITY 0 1 2 3 4 5 6 7 Total cost $8 $9 $10 $11 $13 $19 $27 $37 Total revenue 0 8 16 24 32 40 48 56 a. Calculate profit for each quantity. How much should the firm …
  5. maths

    the total revenue and the total profit functions (in Ringgit) of a product are given as follows: total revenue :R(x)= x^3-95-800x total profit: P(x)=1/3x^3+800x-120 where x is the number of units produced and sold. find the level of …
  6. MATHS

    A manufacture finds the total cost “C” for a product is expressed by C=3x2-8, and the total revenue “R” by R=3x-2, where x is the number of units sold. What is the breakeven point (where total cost=total revenue) to the nearest …
  7. MATHSS

    A manufacture finds the total cost “C” for a product is expressed by C=3x2-8, and the total revenue “R” by R=3x-2, where x is the number of units sold. What is the breakeven point (where total cost=total revenue) to the nearest …
  8. Maths help

    A manufacture finds the total cost "C" for a product is expressed by C=3x2-8, and the total revenue "R" by R=3x-2, where x is the number of units sold. What is the breakeven point (where total cost=total revenue) to the nearest unit?
  9. Maths

    A manufacture finds the total cost "C" for a product is expressed by C=3x2-8, and the total revenue "R" by R=3x-2, where x is the number of units sold. What is the breakeven point (where total cost=total revenue) to the nearest unit?
  10. economics managerial

    total revenue equation TR = 5000Q – 5Q2 and total cost equation C = 500 + 3Q2 Calculate this firm’s profit maximizing price, quantity, total revenue, total cost, and total

More Similar Questions