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  • Week 10 Pre Workshop Questions

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    xan
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    This document contains sample data and questions about cost curves and market equilibrium for three different firms. For firm 1, total revenue decreases then increases with quantity from 0-7 units. Marginal revenue is constant at $8 per unit. The firm operates in a competitive market. For firm 2, total costs and average total costs increase with quantity from 1-6 units, while marginal costs decrease. The profit-maximizing quantity is 200 units and the firm is in long run equilibrium. For firm 3, marginal costs increase with quantity from 1-5 units, while average total costs decrease then increase. The profit-maximizing quantity is 100 units, and a price fall would cause quantity demanded to rise and quantity supplied to fall.

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    This document contains sample data and questions about cost curves and market equilibrium for three different firms. For firm 1, total revenue decreases then increases with quantity from 0-7 units. Marginal revenue is constant at $8 per unit. The firm operates in a competitive market. For firm 2, total costs and average total costs increase with quantity from 1-6 units, while marginal costs decrease. The profit-maximizing quantity is 200 units and the firm is in long run equilibrium. For firm 3, marginal costs increase with quantity from 1-5 units, while average total costs decrease then increase. The profit-maximizing quantity is 100 units, and a price fall would cause quantity demanded to rise and quantity supplied to fall.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    24 views2 pages

    Week 10 Pre Workshop Questions

    Uploaded by

    xan
    This document contains sample data and questions about cost curves and market equilibrium for three different firms. For firm 1, total revenue decreases then increases with quantity from 0-7 units. Marginal revenue is constant at $8 per unit. The firm operates in a competitive market. For firm 2, total costs and average total costs increase with quantity from 1-6 units, while marginal costs decrease. The profit-maximizing quantity is 200 units and the firm is in long run equilibrium. For firm 3, marginal costs increase with quantity from 1-5 units, while average total costs decrease then increase. The profit-maximizing quantity is 100 units, and a price fall would cause quantity demanded to rise and quantity supplied to fall.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Week 10 pre workshop questions

    3.
    a)
    0= -$8
    1= -$1
    2= $6
    3= $13
    4= $19
    5= $21
    6= $21
    7=$19

    b)
    MR
    0= $8
    1= $8
    2= $8
    3= $8
    4= $8
    5= $8
    6= $8

    MC
    0= $1
    1= $1
    2= $1
    3= $2
    4= $6
    5= $8
    6= $10

    c)
    This firm is in a competitive market.

    9.
    a)
    TC
    1= $11
    2= $13
    3= $15
    4= $17
    5= $19
    6= $21

    ATC
    1= $11
    2= $6.5
    3= $5
    4= $4.25
    5= $3.80
    6= $3.50

    b)
    200 pies sold.

    c) It is in long run equilibrium.

    10.
    a)
    MC
    1= $18
    2= $19
    3= $20
    4= $21
    5= $22

    ATC
    1= $17
    2= $9
    3= $6.33
    4= $5
    5= $4.20
    6= $3.66

    b)
    100

    c)
    there will be a price fall, quantity demanded rise, quantity supplied fall.

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