From the given table identify the total cost at which profit is maximised.
Price
Quantity
Total Revenue
Total Cost
Total Variable Cost
5
1
5
4
2
5
2
10
6
4
5
3
15
9
7
5
4
20
14
12
5
5
25
22
20
5
6
30
32
30
From the given table identify the total cost at which profit is maximised.
|
Price |
Quantity |
Total Revenue |
Total Cost |
Total Variable Cost |
|
5 |
1 |
5 |
4 |
2 |
|
5 |
2 |
10 |
6 |
4 |
|
5 |
3 |
15 |
9 |
7 |
|
5 |
4 |
20 |
14 |
12 |
|
5 |
5 |
25 |
22 |
20 |
|
5 |
6 |
30 |
32 |
30 |
Related textbook solutions
Related questions
This table shows the demand schedule, marginal cost, and average total cost for a monopolistically competitive firm.
|
Quantity |
Price |
Marginal Cost |
Average Total Cost |
|
0 |
$50 |
-- |
-- |
|
1 |
$45 |
$30 |
$40 |
|
2 |
$40 |
$24 |
$32 |
|
3 |
$35 |
$14 |
$26 |
|
4 |
$30 |
$10 |
$22 |
|
5 |
$25 |
$12 |
$20 |
|
6 |
$20 |
$32 |
$22 |
|
7 |
$15 |
$50 |
$26 |
|
8 |
$10 |
$74 |
$32 |
|
9 |
$5 |
$104 |
$40 |
|
10 |
$0 |
$140 |
$50 |
Refer to Table 16-4. How much profit will this firm earn when it chooses its output to maximize profit?
| a. |
an $8 profit |
|
| b. |
a $12 loss |
|
| c. |
a $25 profit |
|
| d. |
a $32 profit |
An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:
The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is an average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits.
|
Price ($) |
Quantity |
|
|
Adults |
Children |
|
|
5 |
15 |
20 |
|
6 |
14 |
18 |
|
7 |
13 |
16 |
|
8 |
12 |
14 |
|
9 |
11 |
12 |
|
10 |
10 |
10 |
|
11 |
9 |
8 |
|
12 |
8 |
6 |
|
13 |
7 |
4 |
|
14 |
6 |
2 |
Calculate the price, quantity, and profit if: The amusement park charges a different price in the adult market
Please express your answers for Price and Profit in whole dollars (i.e.10.00)
Please use whole numbers for Quantity (i.e. 10, 27, 4)
|
Price |
Quantity |
Total Revenue |
Marginal Revenue |
Marginal Cost |
Total Cost |
MR-MC |
Profit |
|
6 |
84 |
5 |
30 |
34 |
|||
|
13 |
91 |
7 |
5 |
35 |
2 |
56 |
|
|
12 |
8 |
96 |
5 |
5 |
40 |
0 |
|
|
9 |
99 |
3 |
5 |
45 |
-2 |
54 |
|
|
10 |
100 |
1 |
5 |
50 |
-4 |
50 |
|
|
9 |
11 |
99 |
-1 |
5 |
55 |
-6 |
|
|
12 |
96 |
-3 |
5 |
60 |
-8 |
36 |
|
|
7 |
91 |
-5 |
5 |
65 |
-10 |
26 |
|
|
6 |
14 |
84 |
-7 |
5 |
70 |
-12 |
|
|
5 |
15 |
75 |
-9 |
5 |
75 |
-14 |
0 |
A monopolist has the following fixed and variable costs:
| Price | Quantity | Fixed Cost | Variable Cost | Total Cost | Marginal Cost | Total Revenue | Marginal Revenue |
| $10 | 0 | $8 | $0 | ||||
| $9 | 1 | $8 | $5 | ||||
| $8 | 2 | $8 | $8 | ||||
| $7 | 3 | $8 | $10 | ||||
| $6 | 4 | $8 | $11 | ||||
| $5 | 5 | $8 | $13 | ||||
| $4 | 6 | $8 | $16 | ||||
| $3 | 7 | $8 | $20 | ||||
| $2 | 8 | $8 | $25 |
Complete the above table.
