The table shows the cost and revenue information for a perfectly (or purely) com

Question

The table shows the cost and revenue information for a perfectly (or purely) competitive firm that produces external hard drives. Use whole numbers to answer the following six questions How many units should Quantity Fixed Cost Variable Total What price will Cost (S) Revenue 36 74 145 202 300 435 588 774 uce to for each hard maximize profits? drive 10 100 100 100 100 100 100 100 100 1000 1100 1200 1300 1400 1500 1600 1700 Number Number Units When profit maximizi what is this firm's profit? How many units of production would yield the lowest profits 14 Number Number 16 Units What is the marginal revenue received from ost of producing the the 11th unit? What is the marginal 11th unit Number Number

Explanation / Answer

1) The price the firm will charge for each hard device is $100. Because, in the perfectly competitive market P = MR.

2) To maximize profit, the firm should produce 14 units. Because at this level of output profit is maximum.

3) The firms profit is $1000

4) 17 units of production produces lowest profit.

5) MR received from 11th unit is $100.

6) MC of producing 11th unit is $38.

Q FC($) VC($) TC($) = FC + VC MC($) TR($) MR($) Profit($) = TR-TC 10 100 36 136 1000 864 11 100 74 174 38 1100 100 926 12 100 145 245 71 1200 100 955 13 100 202 302 57 1300 100 998 14 100 300 400 98 1400 100 1000 15 100 435 535 135 1500 100 965 16 100 588 688 153 1600 100 912 17 100 774 874 186 1700 100 826

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.