Week 8 homework XXXXXXXXXXECO 105 XXXXXXXXXXDue date: 10/30/20201) For the following firm in a...

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Week 8 homework XXXXXXXXXXECO 105 XXXXXXXXXXDue date: 10/30/2020
1) For the following firm in a competitive market,
    COSTS
    REVENUES
    Quantity
Produced
    Total
Cost
    Marginal
Cost
    Quantity
Demanded

Price
    Total
Revenue
    Marginal
Revenue
     0
    $0
    --
     0
    $80

    --
     1
    $50

     1
    $80


     2
    $102

     2
    $80


     3
    $157

     3
    $80


     4
    $217

     4
    $80


     5
    $285

     5
    $80


     6
    $365

     6
    $80


     7
    $465

     7
    $80


     8
    $585

     8
    $80


a) Fill the column for marginal cost, total revenue and marginal revenue.
) What is interesting about the numbers you find for marginal revenue.
c) Based on profit maximization rule that you learned in Chapter 14 for competitive firms, what is the profit maximizing output? Explain how you found your answer.
2) For the following firm in a competitive market,
a) What is the profit maximizing quantity (approximately) when the market price is 8? How did you find it?
) What will this firm do if the price falls to $5 in short run and long run?

week-8-homework-qmleinbs-k3qootwt.docx

Shakeel · Accepted Answer

Week 8 homework                     ECO 105                      Due date: 10/30/2020
1) For the following firm in a competitive market,
	COSTS
	REVENUES
	Quantity
Produced
	Total
Cost
	Marginal
Cost
	Quantity
Demanded
	
Price
	Total
Revenue
	Marginal
Revenue
	 0
	$0
	--
	 0
	$80
	 0
	--
	 1
	$50
	 50
	 1
	$80
	 80
	 80
	 2
	$102
	 52
	 2
	$80
	 160
	 80
	 3
	$157
	 55
	 3
	$80
	 240
	 80
	 4
	$217
	 60
	 4
	$80
	 320
	 80
	 5
	$285
	 68
	 5
	$80
	 400
	 80
	 6
	$365
	 80
	 6
	$80
	 480
	 80
	 7
	$465
	 100
	 7
	$80
	 560
	 80
	 8
	$585
	 120
	 8
	$80
	 640
	 80
a) Fill the column for marginal cost,

Week 8 homework XXXXXXXXXXECO 105 XXXXXXXXXXDue date: 10/30/2020 1) For the following firm in a competitive market, COSTS REVENUES Quantity Produced Total Cost Marginal Cost Quantity Demanded Price...

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