Question 1 4 pts Examine the table compettive firm You are hired to determine th

Question

Question 1 4 pts Examine the table compettive firm You are hired to determine the prost-maximizing quantity different prices For each price isted, you must find the output lovel, total revenus cost, and proft Whon the market price is P $14, gives information about the costs of a perfectly for the firm ? QUANTITY TFC TVC What is the proflt maximizing level of output? What is tota e at this level of output? What is the total cost at this level of output? What is the profit at this level of output? 4 45 75 45 180 Question 2 4 pts Examine the table above, which gives information about the costs of a firm. You are hired to detemine the quantity for at different prices. For each price listed, you must find the output level, total revenue cost, and profit. When the market price is P $1 What is the profit maximizing level of output? What is total revenue at this level of What is the total cost at this level of output?

Explanation / Answer

Q1. Quantity TFC TVC TC MC TR MR Profits 0 45 0 45 - 0 - -45 1 45 20 65 20 14 14 -51 2 45 35 80 15 28 14 -52 3 45 45 90 10 42 14 -48 4 45 75 120 30 56 14 64 5 45 120 165 45 70 14 -95 6 45 180 225 60 84 14 -141 Req 1: Profit maximization level of output is 3 units (here loss is minimum) This is the point where the MR>= MC and afterwards MC is began to rise more than MR. Req 2: Total revenue at equilibrium level of output: $ 42. Req 3: Total cost at equilibrium level of output: $ 90. Req 4: Total profit (loss) at this output: ($ 48) Q2. Quantity TFC TVC TC MC TR MR Profits 0 45 0 45 - 0 - -45 1 45 20 65 20 18 18 -47 2 45 35 80 15 36 18 -44 3 45 45 90 10 54 18 -36 4 45 75 120 30 72 18 -48 5 45 120 165 45 90 18 -75 6 45 180 225 60 108 18 -117 Req 1: Profit maximization level of output is 3 units (here loss is minimum) This is the point where the MR>= MC and afterwards MC is began to rise more than MR. Req 2: Total revenue at equilibrium level of output: $ 54. Req 3: Total cost at equilibrium level of output: $ 90. Req 4: Total profit (loss) at this output: ($ 36)

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