Given the environment illustrated in Figure below, Dollars $400 $300 MO ATC AVC $200 $100 0 MR 0 20 40 60 80 100 120 Quantity of Output The profit-maximizing, or loss-minimizing, output for the firm in Figure above is zero units 50 units 70 units 75 units 83 units

ty of Tex 1dentify the profit maximizing Outpur level in the table MC MR 10 10 10 2 10 3 10 10 10 10 14. 18 10 8.

4. A firm's cost curves are given in the following table. TC TFC TVC AVC ATC MC Revenue Profit RO100 RO100 -100 1 140 100 40 40 140 40 60 -80 160 100 60 30 80 20 120 -40 3 170 100 70 23.33 56.66 10 180 10 4 182 100 82 20.5 45.5 12 240 58 5 195 100 95 19 39 13 300 105 6 220 100 120 20 36.66 25 360 140 7 250 100 150 21.42 35.71 30 420 170 8 290 100 190 23.75 36.25 40 480 190 340 240 26.6 37 50 54 200 10 400 100 300 30 40 60 600 200 a. Complete the table. b. Graph AVC, ATC and MC on the same graph. What is the relationship between the MC curve and the ATC and between MC and AVC? c. Suppose the market price is RO 60, how much will the firm products in the short run? How much are the total profits?

2:08 1 .ull LTE AA A moodle.ku.edu.kw MC $19 16 13 10 160 180 210 Quantity 100 Refer to the diagram for a monopolistically competitive firm in short-run equilibrium. This firm's profit- maximizing price will be III

Using the graph below, calculate the firm's profits at the profit maximizing output Price 120 112 104 96 88 80 72 64 56 48 40 32 24 16 8 0 0 34 68 102 136 170 204 238 272 Quantity 306 -P-MRMC AC 340 374 408 442 476

Problem 2: Average total cost, from “Principles of Economics” by N. Gregory MankiwYou are the chief financial officer for a firm that sells gaming consoles. Your firm has thefollowing average-total-cost schedule:Quantity | Average total cost600             $300601             $301Your current level of production is 600 consoles, all of which have been sold. Someone calls, desperateto buy one of your consoles. The caller offers you $550 for it. Should you accept the offer? Why or whynot?

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)

1. A firm has three different production facilities, all of which produce the same product. Whilereviewing the firm’s cost data, Ron, a manager, discovered that one of the plants has a higher averagecost than the other plans and suggests closing this plant. Another manager, Jack, notes that the high-cost plant has high fixed costs but that the marginal cost in this plant is lower than in the other plants.He says that the high-cost plant should not be shut down but should expand its operations. Who isright?   2. Should a firm shut down if its weekly revenue is $1,000, its variable cost is $500, and its fixed cost is$800, of which $600 is avoidable if it shuts down? Explain.

What is the difforence between acounting proft and economic prof? OA Economic profit subtracts both expict and implicit oosts trom total revenue, while accourting proft only sutiracts explicit oosts. OR Accourting profe only nuttracta imglicit coeta from total revenue, whie ecoromic proft only suberacte explicit coste OG Economic proft oriy subtracts implict costs from total revenue, while accounting profit only subtracts enplicit costs OD. Accourting proft suberacts boh explict and impict costs from total ravanue, while economic proft only sutracts explicit oosts.

Output TFC TVC TC MC ATC A 25 25 В 1 25 25 50 25 50 C 2 25 40 65 32.5 3 25 70 95 E 25 110 33.75 F 5 25 160 50 What is the marginal cost of the 4th unit of output? 40 25 50 Cannot be determined.