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Author Question: The above figure shows the cost curves for a typical firm in a competitive market. From the graph, ... (Read 186 times)

folubunmi

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on: Jun 18, 2019


The above figure shows the cost curves for a typical firm in a competitive market. From the graph, estimate the firm's profits when price equals $10 per unit.
Microeconomics ¦ Perloff ¦ 8th Edition
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mmpiza

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Reply #1 on: Jun 18, 2019
When price = 10, p = MC when q = 60. TR = 600. The AC is just above 8.5, say 8.6. This yields TC = 516. The firm's profit is estimated to be around $84.


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CORALGRILL2014

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Reply #2 on: Jun 18, 2019


The above figure shows the cost curves for a typical firm in a competitive market. If there are 200 identical firms, estimate the market quantity supplied when p = 4, 8, and 10.


meganlapinski

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Reply #3 on: Jun 18, 2019
When p = 4, p < AVC so no firms will produce. At p = 8, each firm produces 50 units at a loss. At , each firm produces 60 units. The market quantity supplied at each price is:




CORALGRILL2014

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Reply #4 on: Jun 18, 2019
Excellent


meganlapinski

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Reply #5 on: Jun 18, 2019
Great! Please up vote :D


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