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 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?

  1. 👍
  2. 👎
  3. 👁
  1. OK. I have considered it. What next?

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. 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

  2. Economics

    An industry currently has 100 firms, all of which have fixed costs of $16 and avg. variable cost as follows: Q Avg. Variable Cost ($) 1 1 2 2 3 3 4 4 5 5 6 6 a. Compute marginal cost and avg. total cost. b. the price is $10. what

  3. Operations Management

    The maintenance department of a hospital uses 816 cases of liquid cleanser annually. Ordering costs are $12, carrying costs are $4 per case a year, and the new price schedule indicates that orders of less than 50 cases will cost

  4. Management

    3. A retail co plans to work on a margin of 44% of retail price and to incur other variable costs of 4%. If it expects fixed cost of Birr 20,000, a) Find the equation relating total cost to sales. b) Find the profit it sales are

  1. mathematics

    2. In its first year, “Abol Buna Co” had the following experience Sales = 25,000 units Selling price = br. 100 TVC = br. 1,500,000 TFC = br. 350,000 Required: 1. Develop Revenue, cost & profit functions for the co. in terms of

  2. Economic

    An industry currently has 100 firms, each of which has fixed cost of $16 and average variable cost as follows: Quantity Average Variable Cost 1 $1 2 2 3 3 4 4 5 5 6 6 a. Compute a firm’s marginal cost and average total cost for

  3. Economics

    Willy's widgets, a monopoly, faces the following demand schedule (sales of widgets per month): Price $20 30 40 50 60 70 80 90 100 Quantity 40 35 30 25 20 15 10 5 0 Calculate marginal revenue over each interval in the schedule (for

  4. economics

    all of the following can be used to compute profit per unit except: a) price minus avg total cost. b) total profit divided by quantity. c) avg revenue minus avg total cost d) marginal profit minus marginal cost

  1. Algebra

    2. In its first year, “Abol Buna Co” had the following experience Sales = 25,000 units Selling price = br. 100 TVC = br. 1,500,000 TFC = br. 350,000 Required: 1. Develop Revenue, cost & profit functions for the co. in terms of

  2. Business calc

    A total revenue function is given by R(x) = 1000(x^2 - 0.1x)^1/2 , where R(x) is the total revenue, in thousands of dollars, from the sale of x items. Find the rate at which total revenue is changing when 20 items have been sold.

  3. math/economics in calculus

    The average cost of manufacturing a quantity q of a good, is defined to be a(q) = C(q)/q. The average cost per item to produce q items is given by a(q) = 0.01q2 − 0.6q + 13, for q >0. I know that the total cost is

  4. Business

    A firm currently uses 50,000 workers to produce 120,000 units of output per day. The daily wage per worker is $100, and the price of the firm's output is $48. The cost of other variable inputs is $400,000 per day. (Note: Assume

You can view more similar questions or ask a new question.