Find highest profit or lowest loss availability to this firm

Reference no: EM13177630

Short run profit maximization A monopolistically competitive firm faces the following demand and cost structure in the short run:
Output Price FC VC TC TR Profit/loss
0 $100 $100 $0 ___ ___ ___/___
1 90 ___ 50 ___ ___ ___/___
2 80 ___ 90 ___ ___ ___/___
3 70 ___ 150 ___ ___ ___/___
4 60 ___ 230 ___ ___ ___/___
5 50 ___ 330 ___ ___ ___/___
6 40 ___ 450 ___ ___ ___/___
7 30 ___ 590 ___ ___ ___/___

a. complete the table
b. What is the highest profit or lowest loss availability to this firm?
c. Should this firm operate or shut down in the short run? Why?
d. What is the relationship between marginal revenue and marginal cost as the firm increases output?

Reference no: EM13177630

Questions Cloud

Find the sample standard deviation : Four marbles are chosen without replacement from a box containing 11 red, 9 blue, and 4 yellow marbles. Let X be the number of blue marbles chosen.

Compute the percentage increase in real gdp per person : Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1987 to 2005. Year REAL GDP (2000 prices) population 1987 $6,435,000 million..

What is the rejection region : A business journal investigation of the performance and timing of corporate acquisitions discovered that in a random sample of 2,963 firms, 610 announced one or more acquisitions during the year 2000.

Compute the answer to the nearest dollar : a couple just had a baby.how much should they invest now at 5.5% compounded daily in order to have $40,000 for the child's education 17 years from now? compute the answer to the nearest dollar.

Find highest profit or lowest loss availability to this firm : What is the highest profit or lowest loss availability to this firm? c. Should this firm operate or shut down in the short run? Why? d. What is the relationship between marginal revenue and marginal cost as the firm increases output?

Explain backward-bending supply curves in the wage : Market supply of labor The following table shows the hours per week supplied to a particular market by three individuals at various wage rates. Calculate the total hours per week (QT) supplied to the market.Hourly Wage Hours per week

When to expect such a shift away from checkable deposits : During the Great Depression, the US economy experienced many bank runs, to the point where people became unwilling to keep their money in banks, preferring to hold on to their cash.

What is the equilibrium interest rate : What is the equilibrium interest rate? d. What happens to the interest rate if the money supply increases from 20 to 30? Illustrate your answer graphically. What happens to the interest rate if nominal income increases by 10%?

What is the interest rate on the bond : Consider a bond that promises to pay $100 in one year. a. What is the interest rate on the bond if its price today is $75? $85? $95? b. What is the relation between the price of the bond and the interest rate? c. If the interest rate is 8%, what is t..

User Account

All Pages