Identify the profit-maximizing quantity supplied

Assignment Help Business Economics
Reference no: EM133084093

Assume the table below is extracted from Dodi company Ltd a perfectly competitive firm selling cabbages. Assume that when the firm's selling price is AUD 15, the marginal revenue is also AUD15.

Qty = Quantity; AVC=Average variable cost;  AFC = Average fixed cost; ATC=Average Total Cost; MC= Marginal Cost; Rev = Revenue; MR= Marginal Revenue; Kg = Kilogram

Quantity (Kg) 

AVC

AFC

ATC

MC

2.50

7.50

5.10

 

 

3.50

9.00

3.00

 

9.00

4.50

10.00

2.50

 

12.50

5.50

14.00

1.80

 

13.00

6.00

18.00

1.67

 

15.00

10.00

25.00

1.43

 

16.00

Question 1 Complete the table below and answer the questions that follow.

Question 2 Based on your answers to the table above, identify the profit-maximizing quantity supplied by the firm.  Calculate the amount of profit/loss at this optimal point. Show your work.

Question 3 State and examine the characteristics for a perfectly competitive firm such as Dodi Ltd selling cabbages.

Reference no: EM133084093

Questions Cloud

Are we in control of our decisions dan ariely : Identify a common consumer decision you would deem as irrational or inefficient, that negatively influences either the decision-maker or society at large. Defen
ITMG 524-Project Portfolio Management : ITMG 524-Project portfolio management organizes a series or projects into a single portfolio consisting of reports that capture project objectives,
Components of total cost in the short run : In the operational definitions of costs, what constitutes the total cost of production In the short-run? What are the components of total cost in the short- run
Common elements shared by all decision-making processes : -The ability to make good decisions is the key to successful managerial performance. Discuss the common elements shared by all decision-making processes.
Identify the profit-maximizing quantity supplied : Assume the table below is extracted from Dodi company Ltd a perfectly competitive firm selling cabbages. Assume that when the firm's selling price is AUD 15, th
Develop and deliver the training in-house : As a HRD professional what must you consider when determining to outsource your training or develop and deliver the training in-house?
Important for trainers and trainees to establish rapport : Why is it important for trainers and trainees to establish rapport with each other before a training session?
Short-term implications relevant to stakeholders : Identify all potential stakeholders, and explain the long-term and short-term implications relevant to the stakeholders.
Public policy input and formulation : Why do you think more citizens do not become more involved in public policy input and formulation?

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd