Table 13-17 Consider the following table of long-run total cost for four different firms: Quantity Firm 1 Firm 2 Firm 3 Firm 4 3 $350 $250 $300 $660 $540 $180 $930 $870 $900 $1,060 $1,050 $1,050 $1,050 |$1,290 S510 $800 $390 $450 $490 $700 $750 $850 $120 $150 $600 $210 $340 $660 Refer to Table 13-17. Which firm has constant returns to scale over the entire range of output? Firm 1 6. a. b. Firm 2 с. Firm 3 d. Firm 4

Table 13-17 Consider the following table of long-run total cost for four different firms: Quantity Firm 1 Firm 2 Firm 3 Firm 4 3 $350 $250 $300 $660 $540 $180 $930 $870 $900 $1,060 $1,050 $1,050 $1,050 |$1,290 S510 $800 $390 $450 $490 $700 $750 $850 $120 $150 $600 $210 $340 $660 Refer to Table 13-17. Which firm has constant returns to scale over the entire range of output? Firm 1 6. a. b. Firm 2 с. Firm 3 d. Firm 4

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 5PA

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The following data describe the firm's monthly demand and monthly costs for a manufacturer of electronic components. 1. Complete the following cost and revenue schedules for this company. Total Average Marginal Marginal Cost per Variable Variable Average Price per Cost per Total Cost Revenue per Cost for Quantity of boxes of per box of box of 1000 units Total box of 1000 box of units Fixed Total box of Revenue units 1000 units 1000 units produced Cost Cost 1000 units 1000 units $0 $800 $800 $1,700 $1,575 $1,450 $1,325 1 $1,028 $1,074 $1,117 $1,184 $1,303 2 3 4 5 $1,200 6. $1,075 $950 $1,498 7 $1,753 8 $825 $2,103 (a) What is the profit maximizing (or loss minimizing) quantity of boxesthat this company should supply? Why? (b) What price will the company charge? How is this price determined? Will this result in economic profits? (c) If the company charged a higher price than what you found in (b) above, what would happen? (d) What market structure do you think this company participates…
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Q 4 5 6 Revenue and cost figures can be observed in the table below for Greensons Organic. Use the information in the first three columns to complete the table Output /Sales(Q) Total Revenue (TR) Total Costs (TC) Profit /Loss Marginal Revenue (MR) Marginal Costs (MC) Addition to profit 0 0 8 -8 1 7 14 -7 7 6 2 14 19 -5 7 5 3 21 23 -2 7 4 4 28 26 2 7 3 5 35 28 7 7 2 6 42 31 11 7 3 7 49 38 11 7 7 8 56 48 8 7 10 2. Is Greensons Organic operating in the short run or in the long run? Justify your answer 3. Calculate average variable costs when the level of output is equal to 5 units. 4. What level of output does Greensons Organic maximize profit? Justify/explain your answer and show calculations 5. When will the diminishing marginal returns start to prevail for Greensons Organic and why? 6.…
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