ECON 3U03 Chapter Notes -Rstudio
44 views5 pages
12 Mar 2014
School
Department
Course
Professor
Document Summary
Ex 5. 4: wtrans = b0 + b1ln (totexp) + b2age + b3 nk + e. Table 5. 7 wtrans = -0. 0315 + 0. 014 ln (totexp) + . (0. 0322)
Get access
Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers
Related Documents
Related Questions
1. Suppose that a monopolistically competitive firm must build a production facility to produce a product. The fixed cost of this facility is FC = $24. Also, the firm has a constant marginal cost, MC = $3. Demand for the product that the firm produces is given by P = 27-3Q.
a) Fill in the table below. If any of your values have decimals, you may round to only one numeral after the decimal (nearest 10th of a dollar).
Output |
Price |
Total Cost |
Average Total Cost |
Total Revenue |
Profits |
1 |
|||||
2 |
|||||
3 |
|||||
4 |
|
||||
5 |
7.8 |
||||
6 |
|
||||
7 |
6.4 |
||||
8 |
|||||
9 |
5.7 |
b) How much output will this firm produce if it maximizes profit?
c) What price should this firm charge if it wants to maximize profit?