Question

Rewrite these or use the attached Excel file and compute the missing cells. Gather graph paper...

Rewrite these or use the attached Excel file and compute the missing cells. Gather graph paper and plot these coordinates for 3 curves: Qty v. ATC, Qty v. MC, Qty v. Price. Qty will be on the horizontal axis. All questions will refer to this graph. FC, VC, Price are given. The last row Qty 10 is calculated for you.

Qty FC VC AVC TC ATC MC Price TR MR Profit
0 $10 $6
1 10 7 6
2 10 12 6
3 10 16 6
4 10 20 6
5 10 23 6
6 10 27 6
7 10 32 6
8 10 39 6
9 10 49 6
10 10 63 6.3 73 7.3 14 6 60 6 -13
  • Qty: Quantity to be produced in a batch
  • FC: Fixed Cost (given) (rent)
  • VC: Variable Cost (supplies/labor) (given) It may take a different amount of supplies/labor to make different size batches.
  • AVC: Average Variable Cost (VC/Qty) Supplies/labor for each unit on avg.
  • TC: Total Cost to make chosen Qty (including FC) FC+VC
  • ATC: Average Total Cost (cost per unit on average) TC/Qty
  • MC: Marginal Cost (additional cost to make that next unit)
  • Price: Revenue per unit (given) For Perfect Competition, is the same as MR or D.
  • TR: Total Revenue (incoming Revenue for the whole batch) Income
  • MR: Marginal Revenue (additional revenue for that next unit) For Perfect Competition, is the same as Price. Not for Monopoly!
  • Profit: Total profit made (TR-TC) Revenue minus expenses

Question 5 (1 point)

What is the Marginal Revenue (MR) for the 5th unit?

a

-$3

b

$30

c

$33

d

$6

Question 6 (1 point)

What is the optimal quantity to produce?

a

10

b

7

c

8

d

0

e

5

f

6

Question 7 (1 point)

How much Economic Profit would be made at the optimal production quantiity?

a

$0

b

-$10

c

$42

d

6

e

-$13

Homework Answers

Answer #1

Q5) Marginal revenue of 5th unit = total revenue of 5th unit - total revenue of 4th unit

= 5*6 - 4*6 = 30-24 = 6 (d)

Q6) Optimal quantity to produce is a point beyond which the marginal cost of production exceeds the marginal revenue of production. This happens when q = 7 as t 8 units, MC = 39-32 = 7 > 6 = MR. Thus, the answer is (b) 7

Q7) Economic profit at 7 units = total revenue - tptals costs

= pq - fixed cost - variable cost

= 6*7 - 10 - 32

= 42-42 = 0

Thus, the answer is (a)

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Rewrite these or use the attached Excel file and compute the missing cells. Gather graph paper...
Rewrite these or use the attached Excel file and compute the missing cells. Gather graph paper and plot these coordinates for 3 curves: Qty v. ATC, Qty v. MC, Qty v. Price. Qty will be on the horizontal axis. All questions will refer to this graph. FC, VC, Price are given. The last row Qty 10 is calculated for you. Qty FC VC AVC TC ATC MC Price TR MR Profit 0 $10 $6 1 10 7 6 2 10...
Output (Cases) FC VC TC ATC AVC MC 0 20 1 12 2 20 3   ...
Output (Cases) FC VC TC ATC AVC MC 0 20 1 12 2 20 3    16 4 37 5    67 6 61 7 81 8 116 9 191 Paul’s Gourmet Chocolate Company: Cost Structure with Revenues Complete this table. On graph paper, graph Output on the horizontal axis and ATC, AVC, and MC on the vertical axis. Look at the graph to see how the different costs relate. Output (Cases) Marginal Cost (MC) Total Cost (TC) Marginal Revenue...
Go through this test a few times to learn about output. Get graph paper ready. Assume...
Go through this test a few times to learn about output. Get graph paper ready. Assume we rent a floral booth which will sell flower bouquets. We only have a fixed $10 table rent (FC) but have variable costs depending on how many bouquets we make. These bouquets are a commodity and the market price is $6 (P). Watch for how variable costs VC go down, then up. Also, what marginal cost MC is. Question 1 (1 point) If we...
. The table below illustrates the quantity of output (in units) and total cost (TC, in...
. The table below illustrates the quantity of output (in units) and total cost (TC, in MYR) for a perfectly competitive firm that can sell its output at MYR 9 per unit. Quantity TC TVC ATC AVC MC TR MR Profit /Loss 0 3 0 - - - 0 - -3 1 6 2 12 3 21 4 33 5 49 a. Calculate the total variable cost (TVC), average total cost (ATC), average variable cost (AVC), marginal cost (MC), total...
Profit Maximization/Loss Minimization QUESTION: Complete the table and answer the following questions. The price for this...
Profit Maximization/Loss Minimization QUESTION: Complete the table and answer the following questions. The price for this perfectly competitive firm is $150. QTY | FC | VC | TC | AFC | AVC | ATC | MC | MR. 0 | | | 500 | | | | | 1 | | | 650 | | | | | 2 | | | 700 | | | | | 3 | | | 760 | | | | | 4 |...
Suppose Andy sells basketballs in the perfectly competitive basketball market. His output per day and costs...
Suppose Andy sells basketballs in the perfectly competitive basketball market. His output per day and costs are as follows: Output per Day (Q) Total Cost (TC) 0 $10.00 1 $20.50 2 $24.50 3 $28.50 4 $34.00 5 $43.00 6 $55.50 7 $72.00 8 $93.00 9 $119.00 1) Make a table with Quantity (Q), Total Cost (TC), Fixed Cost (FC), Variable Cost (VC), Average Total Cost (ATC), Average Variable Cost (AVC), Marginal Cost (MC), and Marginal Revenue (MR) on it. 2)...
Problem 1. The following are the hypothetical data of costs and revenues of DIAMOND CANNING CO....
Problem 1. The following are the hypothetical data of costs and revenues of DIAMOND CANNING CO. , Tambler , General Santos City. QUANTITY TVC TFC TC ATC/AC AVC AFC MC PRICE TR 0 0 5,000 0 5000 8,500 5,000 5 10,000 19,000. 5,000 4 15,000 24,000 5,000 3 20,000 36,000 5,000 2 25,000 45,000 5,000 1 Requirements: Solve the different types of costs and complete the table. Using the graphing paper graph the following. Graph all total costs ; TC,...
GIVEN THE FOLLOWING BELOW, please answer problem 1 and problem 2. The values are already given,...
GIVEN THE FOLLOWING BELOW, please answer problem 1 and problem 2. The values are already given, all you need is to graph. The following are the hypothetical data of costs and revenues. QUANTITY TVC TFC TC = TVC + TFC ATC/AC = TC/QTY AVC = TVC/QTY AFC = TFC/QTY MC PRICE TR = PRICE X QUANTITY 0 0 5,000 5,000 0 0 0 0 0 5000 8,500 5,000 13,500 2.7 1.7 1 8,500 5 25,000 10,000 19,000. 5,000 24,000 2.4...
Using the table below, what is the total profit when the firm is producing at operational...
Using the table below, what is the total profit when the firm is producing at operational efficiency? Y P ($) TR ($) MR ($) TC ($) ATC ($) MC ($) Output Price Total Revenue Marginal Revenue Total Cost Average Total Cost Marginal Cost 1 20 20 2 19 30 3 18 38 4 17 48 5 16 62 6 15 84 7 14 117 8 10 168
Q                  TR              MR             
Q                  TR              MR                  TC                             MC                             ATC 0                     0                -                       100                            -                                   - 1                   200            200                    200                         100                               200 2                   400              200                   350                          150                              175 3                   600              200                  550                          200                               183.3 4                   800              200                   800                          250                               200 5                   1000            200                   1100                        300                               220 Quantity of Visits (Q) Total Revenue (TR) Marginal Revenue (MR) Total Costs (TC) Marginal Cost (MC) Average Total Cost (ATC) In a MS Word document, define total revenue (TR), marginal revenue (MR), and the profit-maximizing rule for...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT
Active Questions
  • How can you use Bayes’ theorem in light of new information? In Bayes’ theorem, how does...
    asked 4 minutes ago
  • Which of the following is not one of the four states of a working file? Unchanged,...
    asked 7 minutes ago
  • Assume we have CPU instructions that look like this: load register, address save register, address Where...
    asked 20 minutes ago
  • What is the difference between the following two declarations? char array[] = “Hello World”; char *array...
    asked 36 minutes ago
  • Discuss knowledge and understanding gleaned from The Least Dangerous Assumption and Strategies for Presuming Competence. How...
    asked 36 minutes ago
  • Exercise 13-20 (LO13-3) The owner of Maumee Ford-Volvo wants to study the relationship between the age...
    asked 38 minutes ago
  • Scenario The Department of Administrative Services (DAS) provides a number of services to other departments in...
    asked 46 minutes ago
  • Linear Regressions The number of newly reported crime cases in a county in New York State...
    asked 51 minutes ago
  • Specialty courts have been developed for various categories of crimes and offenders (e.g., mental health, substance...
    asked 55 minutes ago
  • An air-track cart with mass m=0.40kg and speed v0=1.2m/s approaches two other carts that are at...
    asked 55 minutes ago
  • Write a program in C# that reverses a collection and removes elements that are divisible by...
    asked 58 minutes ago
  • A gas pipeline with the thickness of 4mm is to be joint together by using welding...
    asked 1 hour ago