Suppose that a perfectly competitive firm has the following total variable costs (TVC): It also has total
Question:
Suppose that a perfectly competitive firm has the following total variable costs (TVC):
It also has total fixed costs (TFC) of $6. If the market price is $5 per unit:
a. Find the firm's profit-maximizing quantity using the marginal revenue and marginal cost approach.
b. Check your results by re-solving the problem using the total revenue and total cost approach. Is the firm earning a positive profit, suffering a loss, or breakingeven?
Transcribed Image Text:
Quantity: 0234 5 6 TVC: 0 $6 $11 $15 $18 $22 $28
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (16 reviews)
Q TVC MC MR TFC TC TR Economic Profit 0 0 6 6 0 6 6 5 1 6 6 12 ...View the full answer
Answered By
Bhartendu Goyal
Professional, Experienced, and Expert tutor who will provide speedy and to-the-point solutions. I have been teaching students for 5 years now in different subjects and it's truly been one of the most rewarding experiences of my life. I have also done one-to-one tutoring with 100+ students and help them achieve great subject knowledge. I have expertise in computer subjects like C++, C, Java, and Python programming and other computer Science related fields. Many of my student's parents message me that your lessons improved their children's grades and this is the best only thing you want as a tea...
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Macroeconomics Principles and Applications
ISBN: 978-1133265238
5th edition
Authors: Robert e. hall, marc Lieberman
Question Posted:
Students also viewed these Economics questions
-
A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firms product is $150. a. Complete the table. b. At what output rate does the firm...
-
Suppose that a perfectly competitive firm has Fixed Cost = 10 and Variable Cost = q2, so that MC = 2q. What is the maximum profit this firm could make if the market price of the good is $10?
-
A perfectly competitive firm has the following short-run total cost: Quantity TC 0 $5 1 10 2 13 3 18 4 25 5 34 6 45 Market demand for the firms product is given by the following market demand...
-
Choose any company from Muscat Security Market and download its recent balance sheet and income statement (Attach them to the assignment). Find and interpret the result of the following ratios: a....
-
Halfway through Example SSP4, we need to show that the system of equations is consistent for every choice of the vector of constants satisfying 16a + 8b + 4c + 2d + e = 0. Express the column space of...
-
Using the bus impedance matrices determined in Problem 9.51, verify the fault currents for the faults given in Problems 9.10, 9.24, 9.25, 9.26, and 9.27. Data From Problem 9.51:- Compute the \(5...
-
1 ton of refrigeration capacity is equivalent to the heat removal rate of (a) \(50 \mathrm{kcal} / \mathrm{hr}\) (b) \(200 \mathrm{kcal} / \mathrm{hr}\) (c) \(200 \mathrm{BTU} / \mathrm{min}\) (d)...
-
DeCort Company had these adjusting entry situations at the end of December: 1. On May 1, DeCort Company paid $960 for a two-year insurance policy. The policy was for the period May 1 through April 30...
-
What are the implications of transformational leadership on employee motivation, organizational culture, and performance outcomes ?
-
Adam Plc has acquired Bertil Co for 2,500.0. The acquisition is 100% financed with equity. Expected S&GA synergies are 75.0 each year, and applicable tax rate is 28.0%. Using information below...
-
Assume that the market for cardboard is perfectly competitive (if not very exciting). In each of the following scenarios, should a typical firm continue to produce or should it shut down in the short...
-
A profit-maximizing competitive firm will produce the quantity of output at which price exceeds cost per unit by the greatest possible amount. True or false? Explain briefly.
-
Explain the purpose of the four-year method used in computing the tax resulting from a net adjustment due to a change in accounting methods.
-
This assignment covers methods and classes, which are discussed in lectures. This homework also assumes understanding of the concepts that are covered from the beginning of the course. The one...
-
How to create on Android Studio using JAVA? About this assignment In this assignment, I would like you to create an app to introduce a bit about yourself (see below as an example). You can write...
-
Develop a C# console application that simulates a vending machine. Write a method in C# that converts a number from binary to decimal format. Create a simple To-Do List desktop application using...
-
Crystal Limited manufactures photo frames. The photo frames are assembled in the Frame Division. The half-finished frames are then transferred to the Finishing Division, where the glass and other...
-
Oregon Corporation has filed a voluntary petition to reorganize under Chapter 11 of the Bankruptcy Reform Act. Its creditors are considering an attempt to force liquidation. The company currently...
-
The systems together with inputs and initial conditions are given below. Determine system response in each. (a) \(\quad \dot{x}=-2 x+3 r(t)\) \[ y=4 x \] \[ \begin{aligned} x(0) & =10 \\ r(t) & =5...
-
Use translations to graph f. f(x) = x-/2 +1
-
What professional organizations have student chapters on your campus? What are the requirements to join? What kinds of activities do they sponsor?
-
Let the demand and supply of Philippine pesos each month be described by the following equations: Demand for pesos = 100 - 2000e Supply of pesos = 20 + 3000e where the quantities are millions of...
-
Suppose the United States and Mexico are each others sole trading partners. The Fed, afraid that the economy is about to overheat, raises the U.S. interest rate. a. Will the dollar appreciate or...
-
Jordan fixes its national currencythe dinaragainst the dollar. In mid 2011, the fixed rate was 1.41 dollars per dinar. a. Draw a diagram illustrating the market in which Jordanian dinars are traded...
-
The following equation of state is valid for a given pure gas: Vi = RT P - RT T [0,3 - 6.5 10-4] Where T is in K, P is in kPa, and the term within square parentheses () has units of 1/kPa. Develop an...
-
How do sociological theories of deviance and social control elucidate the processes through which individuals and groups are labeled as "deviant" and subjected to stigmatization or criminalization ?
-
Current Attempt in Progress The following information relates to Cullumber Company's accounts receivable Accounts receivable balance on December 31, 2023 $948,000 Allowance for expected credit losses...
Study smarter with the SolutionInn App