08-06 v2 Assume the price of the product is $12. Complete the table, and then answer some questions. Instructions: Round your responses to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Price (P) Quantity (Q) Total Cost (TC) Marginal Cost (MC) Average Total Total Revenue Cost (ATC) Profit (TR) $12 $9 $0 12 T 12 12 12 2 16 24 12 3 21 36 12 4 30 48 12 5 40 60 12 6 52 72 12 7 66 84 At what output rate is Instructions: Enter your responses as a whole number a. total revenue maximized? units b. ATC minimized? units d. total profit maximized? (Hint: Use the profit-maximizing rule.) units Assume the price of silk ties in a perfectly competitive market is $21 and that the typical firm confronts the following costs: Quantity (ties per day) 0 Total Cost $10 1 17 2 26 3 37 4 50 5 65 6 82 7 101 B 122 9 145 10 170 Instructions: Enter your responses as a whole number. a. What is the profit-maximizing rate of output for the firm? (Hint Use the profit-maximizing rule.) ties per day b. How much profit does the firm earn at that rate of output? c. If the price of ties fell to $15, how many ties should the firm produce? ties per day d. At what price should the firm shut down? Less than $[ Complete the following table for a perfectly competitive firm. Instructions: Round your responses to two decimal places. Total Cost Marginal Average Average Cost Total Cost Variable Cost Output 0 $100 5 110 10 130 15 170 20 220 25 290 30 35 380 490 Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. If the price is $10, how much output will the firm supply? (Hint: Use the profit-maximizing rule and enter the quantity in the discrete 5- unit increment as shown in the table.) units b. How much profit or loss will it make? c. At what price will the firm shut down? Less than $ Problem 08-10 A firm has leased plant and equipment to produce video games, which can be sold in unlimited quantities at $13 each. The following figure describes the firm's costs of production: Rate of output (per day) Total cost (per day) 0 1 2 3 5 $50 $55 $62 $75 $96 $125 $162 $203 $248 Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. How much are fixed costs? b. What is the profit-maximizing rate of output? units c. Calculate profits or losses at this profit-maximizing rate of output. $ d. How much is lost if the firm shuts down? (Do not include a negative sign with your answer) e. Should the firm produce or shut down in the short run? The firm should (Click to select) in the short run