Question: 7- 15- 24 PERFECT COMPETITION EXERCISE MICRO ECONOMICS Begin with your exercise called Cost of Production Exercise #1 Qoutput TVC TC AVC ATC MC O

7- 15- 24 PERFECT COMPETITION EXERCISE MICRO ECONOMICS Begin with your exercise called Cost of Production Exercise #1 Qoutput TVC TC AVC ATC MC O 0 $3.00 5.00 N 8.00 9.20 11.40 14.90 11 111 19.90 26.90 00 36.90 Assume the price in the perfectly competitive market is $5.00 Recreate your excel table Adding the following columns: Price, TR, MR and Profit Cut and paste the table into a word document and answer the following questions. A. What is the optimum point of production (output) for this firm? units B. Is this firm making a profit or loss? How much? C. What happens if the price drops to $2.50? Create a new table with this new price and recalculating TR, MR and profit, Does the optimum point of production change? To what? WHY? D. Would the firm be making money or loosing money at this output? E. Would they stay in business or not? Explain why or why not

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!

According to Core Grammar for Lawyers, what is the most accurate response? Which sentence is preferred in formal legal writing? O The firm charged its best client a O The firm charged its best client...

PERFECI' COMPETITION EXERCISE MICRO ECONOMICS Begin with your exercise called Cost of WM We; TVC TC AVC ATC MC 0 0 53.00 7 7 7 1 7 6.00 _ 7 _ z 7 8.00 _ 7 _ 3 7 9.20 7 7 7 4 _ 11.40 7 _ _ 5 7 14.90 _...

I. Which of the following is correct? a) The pivot of the budget line shows the substitution effect while a slope gives the income effect. b) The pivot of the budget line shows the substitution...

Answer will be appreciated please 46. Under monopolist competition, in long run firm may incur a. Profit b. Loss c. Normal profit d. Any of above 47. The process of distinguishing a product or...

answer the following question #6,#10 throughout stage II. This phenomenon is so frequently observed that it is called Figure 6-2 shows that the marginal physical product of labor use low-the law of...

Lesson 3 Assignment Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The main difference between the short run and the long run is that:...

as per these tables i want answers of this Economic Cost of Decisions: You work for Orizont Consulting, an economic consulting firm. In casual conversation with your cousin Daniel, he mentioned that...

Question 3 (Chapter 3) A labor market has, like any other market, has both a demand side and a supply side. More specifically, the employer is the buyer of labor; the job seeker is the seller of...

I need an ultimate study guide for micro economics with all the terms, formulas example problems etc, i have an open book final and am stressing. similar to this I Chrome File Edit View History...

Assume that your countrys income tax structure has the following tax rates: if your income is $30,000 or less you pay no income tax; if your income is above $30,000, you pay 30 percent of the amount...

What is the basic difference between wholesalers and retailers?

How would you collect data to answer these questions? State the type of data each time. a When a drawing pin is dropped, is it more likely to land point up or point down? b How many people visit a...

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...