1nbsp you are given the following information about the

Reference no: EM13373718

1. You are given the following information about the costs of a perfectly competitive firm.

Quantity	TFC	TVC
0	45	0
1	45	20
2	45	35
3	45	45
4	45	75
5	45	120
6	45	180

You are hired to determine the profit-maximizing quantity of the firm for different market prices. Complete the table below.

Market Price	Profit-maximizing level of output	Total Revenue	Total Cost	Profit
$14
$18
$44
$53
$70

2. "The short-run supply curve of a perfectly competitive firm is the firm's marginal cost curve."

Carefully explain the two exceptions to the statement above.

3. Suppose that, in a perfectly competitive market at the profit-maximizing quantity, the market price is greater than average total cost. Carefully explain what will happen to the number of firms, the market supply, and the price of the good as we move from the short run to the long run.

4. Suppose a monopolist faces the following demand curve:

P = 596 - 6Q. Marginal cost of production is constant and equal to $20, and there are no fixed costs.

a) What is the monopolist's profit-maximizing level of output?

b) What price will the profit-maximizing monopolist charge?

c) How much profit will the monopolist make if she maximizes her profit?

d) What would be the value of consumer surplus if the market were perfectly competitive?

e) What is the value of the deadweight loss when the market is a monopoly?

Reference no: EM13373718

Questions Cloud

Write an outline for an essay about causes of obesity in : write an outline for an essay about causes of obesity in the 21st century

1nbsp the current exchange rate between the japanese yen : 1.nbsp the current exchange rate between the japanese yen and the u.s. dollar is 80 yen per dollar.nbsp at current

A reflection paper write a 3 page paper double spaced over : a reflection paper write a 3 page paper double spaced over the book the power of positive thinking by dr. norman

Compose a full response to the following question adapted : compose a full response to the following question adapted from the joy of reading and writing superman and me by

1nbsp you are given the following information about the : 1.nbsp you are given the following information about the costs of a perfectly competitive

The theme for this week is internal struggle and meditation : the theme for this week is internal struggle and meditation. note the feelings that arise as you read certain poems

Reflection papernbsp write a three page paper over the : reflection papernbsp write a three page paper over the book gifted hands the ben carson story by ben carson and

1 if there is no shock and yet the economy in the sr has an : 1. if there is no shock and yet the economy in the sr has an excess supply es of goods and an excess demand ed for

A fellow student says so im not a good writer but i have : a fellow student says so im not a good writer. but i have other places to put my study time. im a management major. ill

User Account

All Pages