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(1) (2) (3) (4) (5) Quantity Q Market Price Total Revenue $ Marginal Revenue $ Total Cost $ Marginal Cost 0 $22 N/A N/A $1,500
(1) | (2) | (3) | (4) | (5) | |
Quantity Q | Market Price | Total Revenue | $ Marginal Revenue | $ Total Cost | $ Marginal Cost |
0 | $22 | N/A | N/A | $1,500 | N/A |
50 | $22 | $1100 | 22 | 1,600 | 2 |
120 | $22 | $2640 | 22 | 2,000 | 5.7 |
180 | $22 | $3960 | 22 | 2,600 | 10 |
220 | $22 | $4840 | 22 | 3,400 | 20 |
250 | $22 | $5500 | 22 | 4,400 | 33.3 |
a) What is firm A's best profit maximizing level of output (Q)? Explain __________________(4 points)
b) At what level of output will firm A produce too many units of Q? ______________
Explain your answer.(3 points)
c)Briefly explain why MR and Price come to be the same for firms operating in these markets. (3 points)
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