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    Cs 29

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    Ammar Akhter Uz Zaman
    - The firm produces 14 units of output and earns a total profit of $108.72. - Marginal cost exceeds price at the 15th unit of output, so the profit-maximizing quantity is 14 units. - At a quantity of 14 units, the firm enjoys positive economic profits.

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    Cs 29

    Uploaded by

    Ammar Akhter Uz Zaman
    7 views1 page
    - The firm produces 14 units of output and earns a total profit of $108.72. - Marginal cost exceeds price at the 15th unit of output, so the profit-maximizing quantity is 14 units. - At a quantity of 14 units, the firm enjoys positive economic profits.

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    cs29

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    - The firm produces 14 units of output and earns a total profit of $108.72. - Marginal cost exceeds price at the 15th unit of output, so the profit-maximizing quantity is 14 units. - At a quantity of 14 units, the firm enjoys positive economic profits.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    7 views1 page

    Cs 29

    Uploaded by

    Ammar Akhter Uz Zaman
    - The firm produces 14 units of output and earns a total profit of $108.72. - Marginal cost exceeds price at the 15th unit of output, so the profit-maximizing quantity is 14 units. - At a quantity of 14 units, the firm enjoys positive economic profits.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Q4

    Q AVC AC MC P MR TR TC Total Profit Marginal Profit


    9 41.10 52.21 30.70 289.00 50.00 2601 469.89 2131.11 19.30 Cost Curves
    10 40.00 50.00 30.10 289.00 50.00 2890 500 2390 19.90 60.00
    11 39.10 48.19 30.10 289.00 50.00 3179 530.09 2648.91 19.90
    12 38.40 46.73 30.70 289.00 50.00 3468 560.76 2907.24 19.30
    13 37.90 45.59 31.90 289.00 50.00 3757 592.67 3164.33 18.10
    14 37.60 44.74 33.70 289.00 50.00 4046 626.36 3419.64 16.30 50.00
    15 37.50 44.17 36.10 289.00 50.00 4335 662.55 3672.45 13.90
    16 37.60 43.85 39.10 289.00 50.00 4624 701.6 3922.4 10.90
    17 37.90 43.78 42.70 289.00 50.00 4913 744.26 4168.74 7.30
    40.00
    18 38.40 43.96 46.90 289.00 50.00 5202 791.28 4410.72 3.10
    19 39.10 44.36 51.70 289.00 50.00 5491 842.84 4648.16 -1.70
    20 40.00 45.00 57.10 289.00 50.00 5780 900 4880 -7.10

    Cost ($)
    30.00 AVC
    AC
    MC
    Ans Q4 (B)
    20.00
    Total profit = 108.72

    So the firm will Enjoy Economic Profits


    10.00

    0.00
    0 5 10 15 20 25
    Quantity

    Cost Curves
    60.00
    Q AVC AC MC P MR TR TC Total Profit Marginal Profit
    9 41.10 52.21 30.70 35.00 35.00 315 469.89 -154.89 4.30
    10 40.00 50.00 30.10 35.00 35.00 350 500 -150 4.90
    11 39.10 48.19 30.10 35.00 35.00 385 530.09 -145.09 4.90 50.00
    12 38.40 46.73 30.70 35.00 35.00 420 560.76 -140.76 4.30
    13 37.90 45.59 31.90 35.00 35.00 455 592.67 -137.67 3.10
    14 37.60 44.74 33.70 35.00 35.00 490 626.36 -136.36 1.30
    15 37.50 44.17 36.10 35.00 35.00 525 662.55 -137.55 -1.10 40.00
    16 37.60 43.85 39.10 35.00 35.00 560 701.6 -141.6 -4.10
    17 37.90 43.78 42.70 35.00 35.00 595 744.26 -149.26 -7.70
    18 38.40 43.96 46.90 35.00 35.00 630 791.28 -161.28 -11.90
    Cost ($)

    19 39.10 44.36 51.70 35.00 35.00 665 842.84 -177.84 -16.70 30.00 AVC
    20 40.00 45.00 57.10 35.00 35.00 700 900 -200 -22.10 AC
    MC

    20.00

    Ans Q4 (C)

    Total profit = 108.72


    10.00
    CM = TR - TVC = 490 - (37.6 x 14) = -36.4

    So the firm must Shutdown its operation


    0.00
    0 5 10 15 20 25
    Quantity

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