Suppose a firm has the following costs: (a) If the prevailing market price is $12 per unit,
Question:
(a) If the prevailing market price is $12 per unit, how much should the firm produce?
(b) How much profit will it earn at that output rate?
(c) If the market price dropped to $8, how much output should the firm produce?
(d) How much profit will it make at that lower price?
Transcribed Image Text:
Output (units): Total cost: 11 10 12 13 14 $70 15 $80 16 17 18 $122 19 $50 $52 $56 $62 $92 $106 $140
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 72% (11 reviews)
a 16 units b 100 profit c 14 units d 42 profit Explanation Output Units 10 11 12 13 14 15 16 17 18 1...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
Suppose a firm has the following production function: Q = 2KL. The marginal product of capital for this production function is 2L, and the marginal product of labor is 2K. If capital rents for $100...
-
Suppose a firm has the following demand equation: Q = 1,000 - 3,000P + 10A Where Q = quantity demanded P= product price (in dollars) A = advertising expenditure (in dollars) Assume for the following...
-
Suppose a firm has the following labor productivity data: If the price of output is $10 and wage is $50 how many workers will this firm hire? What is 'rent seeking'? Number of Workers Quantity of...
-
Dennis Harding is considering acquiring a new automobile that he will use 100% for business. The purchase price of the automobile would be $48,500. If Dennis leased the car for five years, the lease...
-
Suppose we design a discrete-time filter using the impulse invariance technique with an ideal continuous-time lowpass filter as a prototype. The prototype filter has a cutoff frequency of c =...
-
Media Skills: Social Networking, Team Skills With a team assigned by your instructor, choose a company that looks interesting to you and evaluate 10 of its social media posts on Facebook, Twitter,...
-
Sample height averages (in centimeters) for 10 males and 10 females are listed. Find the coefficient of variation for each of the two data sets. Then compare the results. Males 167 165 160 181 190...
-
Linda Madison owns Creations, a business that provides hair and nail care services in a small college town. Recently, Linda has decided to expand her business to include tanning and massage services...
-
Pina is a manufacturer with a purpose: it creates durable, yet affordable, duffel bags with many functional pockets and accessories to encourage people of all ages to travel. In the process of making...
-
Environmental Inc. operates in Canada and the United States. Its basic business is high-temperature treatment services for contaminated soil. In its 2020 financial statements, the company had a loss...
-
Graph a situation where the typical catfish farmer is incurring a loss at the prevailing market price P1 (a) What is MC equal to at the best possible rate of output? (b) Is ATC above or below P1? (c)...
-
Graph the market behavior described in the News Wire "Entry and Price?"
-
How is a marketing-oriented firm different from a production-oriented firm or a sales-oriented firm?
-
Calculate the area of the region bounded by the two curves \(y=x^{2}\) and \(y=\sqrt{x}\) for \(x \geq 0\) using the formula \(A=\oint_{C}-y d x\).
-
How does the principle of informed consent apply to competent patients who refuse lifesaving treatment? How does it apply to incompetent patients who have signed an advance directive?
-
What are the advantages and disadvantages of living wills, DPOA for healthcare, statutory advance directives, and POLST?
-
Refer to Exercise 2. a. Find the probability that there will be exactly 5 requests in a 2 -second time interval. b. Find the probability that there will be more than 1 request in a 1.5 -second time...
-
If a friend tells you she earned \(\$ 5,075\) interest for the year on a 5 -year certificate of deposit paying \(0.5 \%\) simple interest, what is the amount of the deposit?
-
Presented here is selected financial information (in millions of dollars) from the 2017 financial statements of Canadian National Railway Company and Canadian Pacific Railway Limited: Instructions a....
-
The age-old saying for investing is "buy low and sell high," but this is easier said than done. Investors who panic about falling prices sell their investments, which in turn lowers the price and...
-
Explain: Unemployment can be caused by a decrease of aggregate demand or a decrease of aggregate supply. In each case, specify the price-level outcomes.
-
In early 2001 investment spending sharply declined in the United States. In the 2 months following the September 11, 2001, attacks on the United States, consumption also declined. Use AD-AS analysis...
-
What are governments fiscal policy options for ending severe demand-pull inflation? Which of these fiscal options do you think might be favored by a person who wants to preserve the size of...
-
Based on the NPV and IRR investment criteria, should your company introduce a new candy flavor? 1) Should the cost of a marketing survey be included in your decision? Why or why not? 2) Calculate the...
-
You invest into Malaysian stock market. On 3 May 2021, construct an investment portfolio. State the reason(s) for selecting those financial assets available in the Malaysian stock market. (b) To...
-
Line spectra for atoms is generated by electronic transitions between quantum energy levels. For the hydrogen atom we established that in the absence of external fields the energy depends only on the...
Study smarter with the SolutionInn App