ECO100Y1 Lecture : Q2 Cost Incurred by Increasing Output (Medium)
Get access
Related textbook solutions
Related Documents
Related Questions
37.Use the following setup for the next question.
A manufacturing firm is deciding whether or not to invest in a new printer that needs an initial investment of $150,000. The investment would increase cash flows in the first year by $80,000 and in the second year by $75,000.
?If the interest rate is 10% then the net present value of the investment is
?a. $5,000 |
b. ?- $9,091 |
?c. -$15,290 |
d. | ?-$21,901 33. Table 13-16
|
At the short-run break-even point, the perfectly competitive firm is producing how many units of output at the market price of 150$? Furthermore how many units of output will the firm produce to maximize profit in the short run? Specify the amount of economic profit or loss for the firmĀ
Output (Q)Ā | Total Fixed Costs (TFC) ($)Ā |
Total Variable Costs (TVC) ($)Ā |
1 | 100 | 120 |
2 | 100 | 200 |
3 | 100 | 290 |
4 | 100 | 430 |
5 | 100 | 590 |
Ā
In the short run, a market consists of 100 identical firms. The market price is $8, and the total cost to each firm of producing various levels of output is given in the table below. What will total quantity supply be in the market?
Quantity |
Total Costs |
0 |
$1 |
1 |
$7 |
2 |
$14 |
3 |
$22 |
4 |
$31 |
5 |
$41 |
Ā | Ā |
A | 200 units |
B | 300 units |
C | 400 units |
D | 500 units |