A company is considering building a bridge across a river. The bridge would cost $2 million to build and nothing to maintain. The following table shows the company's anticipated demand over the lifetime of the bridge: Price Quantity (Dollars per crossing) (Thousands of crossings) 8 0 7 100 6 200 5 300 4 400 3 500 2 600 1 700 0 800 If the company were to build the bridge, its profit-maximizing price would be $ ? , and it ( would or would not)? produce the efficient level of output. If the company is interested in maximizing profit, it (should , or should not)? build the bridge because profit would be . (Note: If the company incurs a loss, be sure to enter a negative number for profit.) If the government were to build the bridge, it should charge a price of $ ? True or False: The government should build the bridge. True or False
A company is considering building a bridge across a river. The bridge would cost $2 million to build and nothing to maintain. The following table shows the company's anticipated demand over the lifetime of the bridge: Price Quantity (Dollars per crossing) (Thousands of crossings) 8 0 7 100 6 200 5 300 4 400 3 500 2 600 1 700 0 800 If the company were to build the bridge, its profit-maximizing price would be $ ? , and it ( would or would not)? produce the efficient level of output. If the company is interested in maximizing profit, it (should , or should not)? build the bridge because profit would be . (Note: If the company incurs a loss, be sure to enter a negative number for profit.) If the government were to build the bridge, it should charge a price of $ ? True or False: The government should build the bridge. True or False
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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Question
A company is considering building a bridge across a river. The bridge would cost $2 million to build and nothing to maintain. The following table shows the company's anticipated demand over the lifetime of the bridge:
|
|
Quantity
|
|---|---|
|
(Dollars per crossing)
|
(Thousands of crossings)
|
| 8 | 0 |
| 7 | 100 |
| 6 | 200 |
| 5 | 300 |
| 4 | 400 |
| 3 | 500 |
| 2 | 600 |
| 1 | 700 |
| 0 | 800 |
If the company were to build the bridge, its profit-maximizing price would be $ ?
, and it ( would or would not)? produce the efficient level of output.
If the company is interested in maximizing profit, it (should , or should not)? build the bridge because profit would be
. (Note: If the company incurs a loss, be sure to enter a negative number for profit.)
If the government were to build the bridge, it should charge a price of $ ?
True or False: The government should build the bridge.
True
or
False
Transcribed Image Text:335768&id%3D1013381985&snapshotld%3D21195098
Problems & Applications (Ch 15)
9.
200
5.
300
400
3.
500
2.
600
1.
700
0.
800
If the company were to build the bridge, its profit-maximizing price would be S
and it
produce the efficient level of
output.
build the bridge because profit would be S
(Note: If the
If the company is interested in maximizing profit, it
company incurs a loss, be sure to enter a negative number for profit.)
If the government were to build the bridge, it should charge a price of S
True or False: The government should build the bridge.
O True
O False
合
4.
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