Reference no: EM133129737

Assignment: The Supply Curve

Part I: Single Investor-Owned Firm

Complete the following for a single investor-owned firm. 

1. Define total revenue (TR), marginal revenue (MR), and the profit-maximizing rule.
2. Calculate MR, MC, and ATC for Table 3.1.
3. Give the profit-maximizing level of output (Q).

Part II: Tax-Exempt Agency

Now, assume the firm is a tax-exempt agency. One possibility is that tax-exempt agencies maximize output.

1. Define the output-maximization rule.
2. Give the output-maximizing level of output (Q) in Table 3.1.
3. Explain what happens to the supply curve for an output-maximizing firm if it increases the quality of their visits.

Table 3.1

Quantity of Visits (Q)	Total Revenue (TR)	Marginal Revenue (MR)	Total Costs (TC)	Marginal Cost (MC)	Average Total Cost (ATC)
0	0		50
1	200		175
2	400		350
3	600		550
4	800		800
5	1000		1100