Assume that the costs and revenues in the accompanying table apply to a perfectly competitive firm. a.

Question:

Assume that the costs and revenues in the accompanying table apply to a perfectly competitive firm.

a. Find the marginal cost, total revenue, marginal revenue, and profit associated with each level of output for the firm.

b. What is the profit-maximizing level of output for this firm? What are the firm's profits at this level of output?

c. Suppose that the price of the output rises to $400 per unit. Given this price, what is the profit-maximizing level of output for this firm? What are the firm's profits at this level of output?

d. Suppose that the price of the output falls to $250 per unit. Given this price, what is the profit- maximizing level of output for this firm? What are the firm's profits at this level of output?

Units of Output Per Period 0 1 2345 6 7 8 Total Cost ($ per period) 50 150 300 500 750 1050 1400 1800 2250

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 60% (5 reviews)

a Marginal cost MC total revenue TR marginal revenue MR and profit at each level of output Units of Output Per Period Total Cost per period TR per per...View the full answer

Answered By

Muhammad Salman Alvi

Well, I am a student of Electrical Engineeing from Information Technology University of Punjab. Just getting into my final year. I have always been good at doing Mathematics, Physics, hardware and technical subjects. Teaching profession requires a alot of responsibilities and challenges. My teaching experience started as an home tutor a year ago. When I started teaching mathematics and physic subjects to an O Level student. He was about 14 years old. His name was Ibrahim and I used to teach him for about 2 hours daily. Teaching him required a lot of patience but I had to be polite with him. I used to give him a 5 min break after 1 hour session. He was quite weak in basic maths and calculation. He used to do quite a lot of mistakes in his homework which I gave him weekly. So I decided to teach him basics from scratch. He used to say that he got the concept even if he didn't. So I had to ask him again and again. I worked on his basics for a month and after that I started taking a weekly test sesions. After few months he started to improve gradually. Now after teaching him for about a year I can proudly say that he has improved alot. The most important thing was he managed to communicate all the difficullties he was facing. He was quite capable and patient. I had a sincere desire to help him reach to its full potential. So I managed to do that. We had a very good honest relationship of a student and a teacher. I loved teaching him as a tutor. Now having an experience of one year teaching I can read students quite well. I look forward to work as an online tutor who could help students in solving their all sort of difficulties, problems and queries.

4.90+ 29+ Reviews 43+ Question Solved

Related Book For book-img-for-question

Introduction To Economics Social Issues And Economic Thinking

ISBN: 9780470574782

1st Edition

Authors: Wendy A. Stock

See More Books

Question Posted: Oct 28, 2023 12:55 AM

See More Questions

Assume that the costs and revenues in the accompanying table apply to a perfectly competitive firm. a.

Question:

Units of Output Per Period 0 1 2345 6 7 8 Total Cost ($ per period) 50 150 300 500 750 1050 1400 1800 2250 Price ($ per unit) 350 350 350 350 350 350 350 350 350

Step by Step Answer:

a Marginal cost MC total revenue TR marginal revenue MR and profit at each level of output Units of Output Per Period Total Cost per period TR per per...View the full answer

Introduction To Economics Social Issues And Economic Thinking

Students also viewed these Business questions