Assume that the following data is for a profit-maximizing manufacturer: Quantity $ Total Cost 100 140 2 160 190 4 240 5 300 6 370 7 450 8 550 Refer to the above information to answer this question. If the price is $75 per unit, what are the profit maximizing output and the level of profit or loss? Select one: O a. 4 and $40. b. 5 and $80. c. 5 and $75. O d. 8 and $50. O e. 6 and $80.
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- 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. PRICE (Dollars per bippitybop) 240 220 200 180 160 140 120 100 80 8 60 40 20 0 mớ H + 0 9 18 27 36 45 54 63 72 81 QUANTITY (Bippitybops per day) * Demand 90 B 99 108 Total Revenue (?)100 90 80 70 60 ATC 50 40 30 20 AVC МС О 10 + 0 0 5 10 15 20 30 35 40 45 50 QUANTITY (Thousands of shirts) or each price in the following table, use the graph to determine the number of shirts this firm would produce in order to maximize its profit. Assume hat when the price is exactly equal to the average variable cost, the firm is indifferent between producing zero shirts and the profit-maximizing uantity. Also, indicate whether the firm will produce, shut down, or be indifferent between the two in the short run. Lastly, determine whether it will nake a profit, suffer a loss, or break even at each price. Price Quantity (Dollars per shirt) (Shirts) Profit or Loss? Produce or Shut Down? Shut down 10 20,000 Loss Shut down 20 10,000 Loss Shut down 32 5,000 Loss Either 0 or 37,500 Shut down 40 Loss 25 COSTS (Dollars)The following graph illustrates the weekly demand curve for motorized scooters in Roanoke. 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. PRICE (Dollars per scooter) 260 240 220 200 180 160 140 120 100 80 60 40 20 0 0 9 18 27 A X B Demand 36 45 54 63 72 81 QUANTITY (Scooters) 90 99 108 117 Total Revenue ?
- 2. The relationship between price and demand per month for a consumer product is p = 3500 -1.1D5 where p is the price per unit in dollars and D is the demand in units. The fixed cost is $300 per month and the variable cost is $4.00 per unit. What is the optimal number of units that should be produced and sold per month? a. b. What is the maximum profit per month?X 1 ences If the price of oats is $3.0 per kilo, calculate the total revenue and the total profit (or loss) at the quantities shown in below table. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Leave no cells blank - be certain to enter "0" wherever required. Mc Graw Hill Quantity (kilos) Total revenue Total cost Total profit $ 600 1800 $1,900 700 2100 $2,000 $ 800 2400 $2,400Principles of Microeconomics Name: Homework #3 Prof. R. Harris DUE: Wednesday, April 17, 2019 at the beginning of class - NO EXCEPTIONS. Please remember to show all work and please be neat. Please staple this if you print it on your own. 1. Consider the following table of numbers, which represents demand and cost conditions for a com firm. petitive TR 600 0 1 2 $o $400 600 $400 $240 600 $430 $670 $960 $1,350 $1,840 $2,440 $3,120 $3,910 $4,800 600 600 600 600 600 600 5 6 7 600 600 9 10 (a) Fill in the missing values (b) Use the information in the chart to determine what level of output the firm should produce. Explain your reasoning.
- See Hi At a market price of $5 your artisanal pencil business maximizes profits by producing 484 pencils per day. When you produce this quantity of pencils per day, your average cost per unit is $4. What is your total revenue per day? S What is your total cost per day? S What is your daily profit? SV See Hint Suppose that Juan sells burritos. The total cost of production, based on the number of burritos produced, is shown in the following table. Number of burritos Total cost ($) 1. 8) 2. 10 3) 13 4. 18 25 34 7. 45 Suppose that the price is $6. Assuming profit maximization, how many burritos will Juan sell? asopdne1. The following table shows the demand and supply for a popular pair of shoes sold by Akron Enterprise Limited (AEL). TABLE 1 Price per pair Quantity Quantity Market Pressure on $ Demanded supplied Condition price 105 25000 75000 Surplus 90 30000 70000 75 40000 60000 Downward 60 50000 50000 45 60000 35000 30 80000 20000 Shortage 15 100000 5000 Upward Other information regarding AEL are as follows: Fixed Cost = $2000 Variable Cost = 20Q a. Complete the table above: b. Graphically illustrate market equilibrium using the information in the above table. c. Calculate and interpret the price elasticity of demand using the midpoint formula as the price of a pair of shoe rises from $60 to $75. d. Explain and graphically illustrate a price floor implemented by the government using an appropriate price in the table above. е. If Akron Enterprise Limited sells its product at the equilibrium price, calculate total revenue and total profit. f. At what level of price(s) identify above is a shut-down…
- 1. The following table shows the demand and supply for a popular pair of shoes sold by Akron Enterprise Limited (AEL). TABLE 1 Price per pair Quantity Quantity Market Pressure on $ Demanded supplied Condition price 105 25000 75000 Surplus 90 30000 70000 75 40000 60000 Downward 60 50000 50000 45 60000 35000 30 80000 20000 Shortage 15 100000 5000 Upward Other information regarding AEL are as follows: Fixed Cost = $2000 Variable Cost = 20Q d. Explain and graphically illustrate a price floor implemented by the government using an appropriate price in the table above. e. If Akron Enterprise Limited sells its product at the equilibrium price, calculate total revenue and total profit. f. At what level of price(s) identify above is a shut-down price for Akron Enterprise Limited. g. Graphically illustrate the shutdown position for a typical firm.Would you rather have efficiency or variety? That is, one opportunity cost of the variety of products we have is that each product costs more per unit than if there were only one kind of product of a given type, like shoes. Perhaps a better question is, What is the right amount of variety? Can there be too many varieties of shoes, for example?A firms marginal cost curve above the average variable cost curve is equal to the films individual supply curve. This means that every time a firm receives a price from the market it will be willing to supply the amount of output where the price equals marginal cost. What happens to the films individual supply curve if marginal costs increase?