6 1. Complete the Table 1 (below) by calculating: Marginal Cost (Column I: Total Revenue (Column VI:Marginal Revenue (Column VI)Fill in the cellsThen using the total revenue you calculated previcusly, work out the total profits at 5 units, and then 6 units. Use a a bit of paper to do this. You do not need to show this working but will requireanswer for doing the final two questions.(Profit - TR - TC)2. Which output results in the higher profit: 5 or 6? (Put number only in the box to the right)3. What is the profit at this profit-maximising output? (Put number only in the box below:do not put $ sign)IVVIAverageQuantityTotal CostTotal RevenueMarginal RevenueMarginal Cost (MC)Revenueoutput(TC)(TR)(MR)(Price)(Q)s011.522.533.54.51051505.5RE(Alt + A)140

Answered: Image /qna-images/answer/be0c3b4b-29e5-4dcc-8534-0486a19009de.jpg

1. Complete the Table 1 (below) by calculating: Marginal Cost (Column I: Total Revenue (Column V: Marginal Revenue Column VI) Fill in the cells Then using the total revenue you calculated previously, work out the total profits at 5 units, and then 6 units. Use a a bit of paper to do this. You do not need to show this working but will require the answer for doing the final two questions. (Profit- TR- TCI 2. Which output results in the higher profit: 5 or 6? (Put number only in the box to the right.) 3. What is the profit at this profit-maximising output? (Put number only in the box below.do not put $ sign)

1. Complete the Table 1 (below) by calculating: Marginal Cost (Column I: Total Revenue (Column V: Marginal Revenue Column VI) Fill in the cells Then using the total revenue you calculated previously, work out the total profits at 5 units, and then 6 units. Use a a bit of paper to do this. You do not need to show this working but will require the answer for doing the final two questions. (Profit- TR- TCI 2. Which output results in the higher profit: 5 or 6? (Put number only in the box to the right.) 3. What is the profit at this profit-maximising output? (Put number only in the box below.do not put $ sign)

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 7PA

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Explain in words why a profit-maximizing film will not choose to produce at a quantity where marginal cost exceeds marginal revenue.
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TOTAL COST AND REVENUE (Dollars) 100 Total Cost ם Total Revenue 75 50 -25 A 50 0 1 2 5 QUANTITY (Shirts) A A Profit Calculate Neha's marginal revenue and marginal cost for the first seven shirts she produces and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost. (?) COSTS AND REVENUE (Dollars per shirt) 30 25 225 20 15 10 о OO 2 3 A 5 6 QUANTITY (Shirts) Marginal Revenue + Marginal Cost Neha's profit is maximized when she produces 10 shirts. When she does this, the marginal cost of the previous shirt she produces is $ which is than the price Neha receives for each shirt she sells. The marginal cost of producing an additional shirt (that is, one more shirt than would maximize her profit) is S than the price Neha receives for each shirt she sells. Therefore, Neha's profit- maximizing quantity corresponds to the intersection of the which is curves. Because Neha is a price taker, this…
JYour business has the capacity to produce up to 5 units/week. The table & graph below show average cost (AC) for different weekly production levels. Your objective is to maximize profit each week. Average Cost 22 20 AC 18 1 20 14 2 15 12 3 12 10 1 2 4 4 13 Quantity 15 Your product sells in the market for $21/unit, and you can sell as many units at that price as you can bring to market. You know from your economics training that deciding how much to produce should rely on marginal concepts like marginal cost (MC). So, based on the AC table above, create a table that shows the MC of each unit. (Assume that there are no fixed costs, so total costs are zero if Q=0.) Based on MC for each unit, determine the profit-maximizing quantity to produce and sell. BRIEFLY explain your answer. (Your answer needs to be based on MC and being able to sell each unit for $21.) AC ($/unit)
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1. Mariel runs an ice cream shop. Her short-run cost is given by 300 + is the number of ice cream cones she sells per day. + 3q where q 3000 (a) Find mathematical expressions for Mariel's marginal cost, average variable cost, and average total cost. (b) Sketch' Mariel's marginal cost, average variable cost, and average total cost. (c) Suppose the market price for ice cream cones is $3. How many ice cream cones will Mariel supply? What will her profits be? Identify your answers on the diagram and then compute the values mathematically. (d) Find the minimum market price such that Mariel will stay in business in the short-run, both on your diagram and mathematically. (e) Assume that Mariel can only run an ice cream shop of this size and in the long run must decide whether to operate or not. (In other words, assume that Mariel's LRAC curve is her short-run average total cost curve.) Identify the minimum market price such that Mariel will stay in business in the long-run on your diagram.…
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4. Elasticity and total revenue The following graph shows the daily demand curve for bippitybops in Denver. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. 120 110 100 Total Revenue 90 B0 70 50 40 30 20 10 Demand 10 20 30 40 50 70 90 100 110 120 QUANTITY (Bippitybops) PRICE (Dollars per bippitybop)
A computer company produces affordable, easyto-use home computer systems and has fixed costs of$250. The marginal cost of producing computers is $700for the first computer, $250 for the second, $300 for thethird, $350 for the fourth, $400 for the fifth, $450 for thesixth, and $500 for the seventh.a. Create a table that shows the company’s output,total cost, marginal cost, average cost, variablecost, and average variable cost.b. At what price is the zero-profit point? At whatprice is the shutdown point?c. If the company sells the computers for $500, is itmaking a profit or a loss? How big is the profitor loss? Sketch a graph with AC, MC, and AVCcurves to illustrate your answer and show theprofit or loss.d. If the firm sells the computers for $300, is itmaking a profit or a loss? How big is the profitor loss? Sketch a graph with AC, MC, and AVCcurves to illustrate your answer and show theprofit or loss.