Compute the total cost and total revenue

Reference no: EM1312908

Short- Run Profit Maximization

A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firm's product is $150.

Output	FC	VC	TC	TR	Profit/Loss
0	$100	$0	___	___	____
1	$100	$100	___	___	___
2	$100	$180	___	___	___
3	$100	$300	___	___	____
4	$100	$440	___	____	____
5	$100	$600	___	____	____
6	$100	$780	____	____	_____

1. Complete the table.

2. At what output rate does the firm maximize profit or minimize loss?

3. What is the firm's marginal revenue at each positive level of output? Its average revenue?

4. What can you say about the relationship between marginal revenue and marginal cost for output rates below the profit-maximizing (or loss-minimizing) rate? For output rates above the profit- maximizing (or loss-minimizing) rate?

Reference no: EM1312908

Questions Cloud

Question based on revenue recognition principle : Theory question based on revenue recognition principle - Why do the two revenue recognition policies differ?

Recoil velocity of a raft : A 55-kg swimmer is standing on a stationary 210-kg floating raft. The swimmer then runs off the raft horizontally with a velocity of +4.6 meter per second relative to the shore. Calculate the recoil velocity that the raft would have if there were ..

Developing three regression models : Develop three regression models to predict the selling price based upon each of the other factors individually. Which of these is best?

Recognize revenue for product sales : Determine when these two companies recognize revenue for product sales allowing customers the right of return.

Compute the total cost and total revenue : What can you say about the relationship between marginal revenue and marginal cost for output rates below the profit-maximizing (or loss-minimizing) rate? For output rates above the profit- maximizing (or loss-minimizing) rate?

Theory question based on revenue recognition : Theory question based on revenue recognition - What factors does the standard discuss that may impair the ability to make a reasonable estimate of returns?

Estimating simple linear regression equation : A sample of twenty automobiles was taken, and the miles per gallon (MPG), horsepower, and total weight were recorded. Develop a linear regression model to predict MPG using horsepower as the only independent variable. Develop another model with weig..

Cash flows from financing activities for 2008 : Multiple choice question based on cash flow statement - Cash flows from financing activities for 2008 total

Explain recommendation for a project based on npv : Explain Recommendation for a project based on NPV and What is the project's annual after tax cash flows for years

User Account

All Pages