1. The following table has information on the revenues and costs for Tom's tennis ball manufacturing which operates in a perfectly competitive market. a) Complete the table that corresponds to Tom's production when price is $3. What is MR? b) What is Tom's profit maximization output? What is the shutdown price, entry and exit price? e) What is the economic profit or loss? Total No of baseballs Total Fixed Total Cost S Variable Costs Cost $ 1.00 2,00 2. 4.00 7.00 11.00 16.00

1. The following table has information on the revenues and costs for Tom's tennis ball manufacturing which operates in a perfectly competitive market. a) Complete the table that corresponds to Tom's production when price is $3. What is MR? b) What is Tom's profit maximization output? What is the shutdown price, entry and exit price? e) What is the economic profit or loss? Total No of baseballs Total Fixed Total Cost S Variable Costs Cost $ 1.00 2,00 2. 4.00 7.00 11.00 16.00

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 3PA

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