9. There are two methods of showing the profit-maximising position for a firm. The first uses total revenue and total cost curves. The figure below shows the total cost and revenue curve: for a firm on the same diapam. 50 TR 30 20 10 10 20 30 40 60 00 70 80 90 Quantity (a) At what output is the firm's profit maximiced?. (b) How much profit is made at this output?. (e) Draw the total profit TII curve over the range of output where positive profit is made. Costs and revenues (E)

9. There are two methods of showing the profit-maximising position for a firm. The first uses total revenue and total cost curves. The figure below shows the total cost and revenue curve: for a firm on the same diapam. 50 TR 30 20 10 10 20 30 40 60 00 70 80 90 Quantity (a) At what output is the firm's profit maximiced?. (b) How much profit is made at this output?. (e) Draw the total profit TII curve over the range of output where positive profit is made. Costs and revenues (E)

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 7PA

See similar textbooks

Similar questions

How does the average cost curve help to show whether a firm is making profits or losses?
What two lines on a cost curve diagram intersect at the zero-profit point?
What is a price taker firm?
What two lines on a cost curve diagram intersect at the shutdown point?
A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
How does a perfectly competitive film calculate total revenue?
Why does exit occur?
The AAA Aquarium Co. sells aquariums for 20 each. Fixed costs of production are 20. The total variable costs are 20 for one aquarium, 25 for two units, 35 for the three units, 50 for four units, and 80 for five units. In the form of a table, calculate total revenue, marginal revenue, total cost, and marginal cost for each output level (one to five units). What is the Profit-maximizing quantity of output? On one diagram, sketch the total revenue and total cost curves. On another diagram, sketch the marginal revenue and marginal cost curves.
How does the average variable cost curve help a firm know whether it should shut down immediately?