(Answered) The following table gives short-run and long-run total

Economics

The following table gives short-run and long-run total costs for various levels of output for a perfectly competitive firm:

Output (Q)SRTCAVCTR

0350

1400

2425

3465

4505

5560

6635

7730

Note: AVC is Average Variable Cost

TR is Total Revenue

SRTC is Short Run Total Cost

SRTC = FC + VC (Total Cost = Fixed Cost + Variable Costs)

Please see background material for additional formulas.

Suppose the fixed cost (FC) of production is $350 and Price (P) is $55, complete the table above. (Cut and paste the table into a separate document).
Suppose you are producing 2 units of output (Q = 2), if you want to produce one extra unit of output (Q = 3), what would be the marginal cost? (Show your work.)
If the market price is given as $55, how much output will the perfectly competitive firm produce to maximize profits? (Show your work.)
Calculate the profit or loss. (Show your work.)
Should the firm always shut down in the short run when it experiences a loss? Explain.

View complete question

Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M91595377
Price:- $40

Verified Expert

Priced at $80 Now at $40, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Macroeconomics

Question - this question is to get some practice drawing

Question - This question is to get some practice drawing budget constraints. You are in your first semester at college and deciding to spend your income between textbooks and food. You have $360 for the month. Textbooks ...

Question 1 suppose the marginal propensity to consume is 06

Question: 1. Suppose the marginal propensity to consume is 0.6, the marginal tax rate is 0.25, and the the marginal propensity to import is 0.2. What is the multiplier? 2. Suppose that in the economy described in the pre ...

Question good x is produced in a perfectly competitive

Question: Good X is produced in a perfectly competitive market using a single input, Y, which is itself also supplied by a perfectly competitive industry. If the government imposes a price ceiling on Y, what happens to t ...

Introductory macroeconomics assignment -questions1 suppose

Introductory Macroeconomics Assignment - Questions 1. Suppose that the election of a popular candidate suddenly increases people's confidence in the future. Use the model of aggregate demand and aggregate supply to analy ...

Question why might a parent company like mcdonalds or

Question: Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees? In many smaller cities all McDonald's outlets are owned by the same ...

Question marketing plan target markets swot and current

Question: Marketing Plan: Target Markets, SWOT, and Current Marketing Mix Extend the analysis of the target market by profiling three different groups, ranking them in priority order, and discussing the differences in ea ...

Question - a firm has two variable factors and a production

Question - A firm has two variable factors and a production function, f(x 1 , x 2 ) = x 1 ½ x 2 ¼ . The price of its output is 4. Factor 1 receives a wage of w 1 and factor 2 receives a wage of w 2 . (a) Write an equatio ...

Question the knowledge economy what leads to a patent race

Question: The knowledge economy What leads to a patent race? Is such a race productive or unproductive? Hint: Think of how patents allow companies monopoly power for a temporary period. The response must be typed, single ...

Question - in a small town there is an extremely talented

Question - In a small town, there is an extremely talented baker. In a competitive market with other bakers, he faces a private marginal benefit (demand) curve of 200-Q. The marginal cost curve for producing the bread is ...

Question in an effort to move the economy out of a

Question: In an effort to move the economy out of a recession, the federal government would engage in expansionary economic policies. Respond to the following points in your paper on the actions the government would take ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Macroeconomics Expert