Question

Consider total cost and total revenue given in the following table: $$\mathrm{Quantity} \quad 0\quad 1\quad 2\quad 3\quad 4\quad 5\quad 6\quad 7 $$ $$\mathrm{Total cost} \quad$8\quad 9\quad 10\quad 11\quad 13\quad 19\quad 27\quad 37 $$ $$\mathrm{Total revenue}\quad $0\quad 8\quad 16\quad 24\quad 32\quad 40\quad 48\quad 56 $$ a. Calculate profit for each quantity. How much should the firm produce to maximize profit? b. Calculate marginal revenue and marginal cost for each quantity. Graph them. ($Hint$: Put the points between whole numbers. For example, the marginal cost between 2 and 3 should be graphed at 2 $1\over2$.) At what quantity do these curves cross? How does this relate to your answer to part (a)? c. Can you tell whether this firm is in a competitive industry? If so, can you tell whether the industry is in a long-run equilibrium?

Name: consider total cost and total revenue given in the following table mathrmquantity quad 0quad 1quad 2quad 3quad 4quad 5quad 6quad 7 mathrmtotal cost quad8quad 9quad 10quad 11quad 13quad 19quad 27quad 2
Uploaded: 2023-04-26T19:39:19-08:00
Duration: 1 min 53 s
Channel: Numerade
Description: consider total cost and total revenue given in the following table mathrmquantity quad 0quad 1quad 2quad 3quad 4quad 5quad 6quad 7 mathrmtotal cost quad8quad 9quad 10quad 11quad 13quad 19quad 27quad 2

          Consider total cost and total revenue given in the following table:
$$\mathrm{Quantity} \quad 0\quad 1\quad 2\quad 3\quad 4\quad 5\quad 6\quad 7 $$
$$\mathrm{Total cost} \quad$8\quad 9\quad 10\quad 11\quad 13\quad 19\quad 27\quad 37 $$
$$\mathrm{Total revenue}\quad $0\quad 8\quad 16\quad 24\quad 32\quad 40\quad 48\quad 56 $$
a. Calculate profit for each quantity. How much should the firm produce to maximize profit?
b. Calculate marginal revenue and marginal cost for each quantity. Graph them. ($Hint$: Put the
points between whole numbers. For example, the marginal cost between 2 and 3 should be graphed
at 2 $1\over2$.) At what quantity do these curves cross? How does this relate to your answer to part (a)?
c. Can you tell whether this firm is in a competitive industry? If so, can you tell whether the industry
is in a long-run equilibrium?

Added by Stephanie G.

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