Question: Please write clearly and show all formulas explaining how you did them. I am new to these topic. Much appreciated! Answer all please! 3. Suppose

Please write clearly and show all formulas explaining how you did them. I am new to these topic. Much appreciated! Answer all please!

Please write clearly and show all formulas explaining how you did them.

3. Suppose that the train system in the city of Vancouver (British Columbia) operates based on the data given in the table below. Price Quantity Total Cost Revenue Marginal Average Cost Marginal Revenue Cost 30 27 27 45 24 60 21 4 69 18 5 75 15 6 84 12 96 9 8 111 6 9 132 10 162 3.1. Calculate revenue, marginal revenue, average cost and marginal cost. (2 marks) 3.2. Based on the numbers you calculated in 3.1., what type of market structure where this firm operates is this? Explain. (2 marks) 3.3. If this firm would allow to operate in a market without any government interventions, what output would it supply and what price would it charge? What would the level of profit for this firm be? (2 marks) 3.4. Suppose the government intervenes in this market to maximize efficiency in this market, what approximate output would this firm supply and what approximate price would it charge? What would the level of profit for this firm be? (2 marks) 3.5. Suppose the government wants the firm being able to cover its production costs and implements a policy promoting zero profits in the market, what approximate output would this firm supply and what approximate price would it charge? What would the level of profit for this firm be? (2 marks)

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 Economics Questions!