1. \"Just Us\" textbook company is the only seller of textbooks in Collegetown a
ID: 1118574 • Letter: 1
Question
1. "Just Us" textbook company is the only seller of textbooks in Collegetown and faces the following demand and cost conditions: Quantity Sold 0 ulart Price of Textbook ($) 60 56 54 52 50 48 46 16 36 64 100 144 196 3 a. If "Just Us" desires to maximize profit, what price will it charge for textbooks, and how many will it sell? b. How much profit will "Just Us" earn? 2. Redo #1 assuming that the demand and cost conditions are that of a perfectly competi- tive market for textbooks. Given the cost conditions in #1, compute and depict the family of total, average and marginal costs (eg. TC, TFC, TVC, ATC, AFC, AVC, MC). 4. Are the cost conditions in #1 representative of a short-run or long-run scenario? W 3. hy?Explanation / Answer
Profit earned by selling different quantities of books:-
Answer 1>
a) to maximise profits 5 units will be sold at the rate of $50 per unit.
b) Just us will earn profit of $ 150 by selling 5 units.
Answer 2>
In order to maximise profits in perfect competion production is done untill MR = MC or the difference between MR and MC is positive. In this case the producer will produce 5 units because if 6 units are produced then MR - MC becomes negative
(MR = 288-250=38 ; MC = 144-100 =44. and MR - MC = -6)
Answer 3>
I have answered 3 of these questions pls repost for other answers. Also pls rate positively and let me know if further clarification needed.
Book Price $ Quantity sold Total revenue $ total cost $ profit $ 60 0 0 0 0 58 1 58 4 54 56 2 112 16 96 54 3 162 36 126 52 4 208 64 144 50 5 250 100 150 48 6 288 144 144 46 7 322 196 126Related Questions
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