..ooo Boost 3:44 PM 69% Back 8 Suppose you are hired as an economic consultant f
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..ooo Boost 3:44 PM 69% Back 8 Suppose you are hired as an economic consultant for Profmax Consulting Company Your job is to advise the company's clients on the appropriate action to take in the short run in order to maximize the profits (or minimize the losses) of each firm. The firms you are to analyze produce different products, and each operates independently in a different perfectly competitive market. You may assume that each is currently operating at an output level where marginal cost is increasing. Fill in the missing information, and make your suggestions about the appropriate action for each firm by placing one of the following symbols in the last row of the table of information that follows. C = = currently operating at the correct level of output increase the level of output D = decrease the level of output SD shut down the plant A B C D EFG $0.50 Price Output TR TC TFC $3.50 $3.00 $5.00 300 750 00 300 750 700 700 1000 $500 $300 $2800 $1800 $4000 SS000 $525 $262s $2975 1200 -- $180 $1200 $2450 -$3000 ATC $0.40- $1.20 $0.40 $1.00 m$550 55.50 $5.50 $5.50 1.20 $3.00$200 Minimum MC $4.00 $350 -$3.75 Suggestion _ _ _Explanation / Answer
All figures in dollars.
Firm A B C D E F G Price 0.50 1.00 3.50 4.00 3.00 5.00 5.00 Output 1000 300 750 700 600 800 1000 TR 500 300 2625 2800 1800 4000 5000 TC 400 525 2625 2975 2280 3400 5500 TFC 100 165 1575 525 180 1200 2500 TVC 300 360 1050 2450 2100 2200 3000 ATC 0.40 1.75 Minimum 4.25 3.8 5.50 5.50 AVC 0.3 1.20 3.00 3.50 2.00 Minimum 3.00 MC 0.40 1.00 0 4.00 3.50 5.75 SuggestionRelated Questions
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