Suppose a firm has the following costs: Outputs (Units) 10 11 12 13 14 15 16 17 18 19 Total Cost (US$) 50 52 56 62 70 80 92 106 122 140 1. If the prevailing market price is $12 per unit, how much should the firm produce? 2. How much profit will it earn at that output rate? 3. If the market price dropped to $8, how much output should the firm produce? 4. How much profit will it make at that lower price?
Suppose a firm has the following costs: Outputs (Units) 10 11 12 13 14 15 16 17 18 19 Total Cost (US$) 50 52 56 62 70 80 92 106 122 140 1. If the prevailing market price is $12 per unit, how much should the firm produce? 2. How much profit will it earn at that output rate? 3. If the market price dropped to $8, how much output should the firm produce? 4. How much profit will it make at that lower price?
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter11: Price-searcher Markets With High Entry Barriers
Section: Chapter Questions
Problem 14CQ
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Suppose a firm has the following costs:
Outputs (Units) 10 11 12 13 14 15 16 17 18 19
Total Cost (US$) 50 52 56 62 70 80 92 106 122 140
1. If the prevailing market price is $12 per unit, how much should the firm produce?
2. How much profit will it earn at that output rate?
3. If the market price dropped to $8, how much output should the firm produce?
4. How much profit will it make at that lower price?
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