2. What is the profit maximizing (or loss-minimizing) level of output for this firm? (Assume there are no fractional levels of output - the firm can produce two people eaters or three people eaters, but not 2.5 or 3.75 people-eaters.) (5 points) Exercise III: Profit maximization, the competitive firm, Fco 226, Kreier Revised Nov 13,2019 (61 points total, but I will record percentage score in gradebook) Name I. Below is a cost and revenue table for a perfectly competitive firm producing purple- sported people caters. Fill in the missing information assuming that market price is $246 points) MC ATC MR TR Profit 0 IOS 105 NA NA 105 135 30 135 1 2 IOS 160 25 80 3 105 180 20 60 4 195 15 IOS 105 48.75 43 5 215 20 6 105 250 35 IOS 295 45 7 8 41.67 42.14 44.375 TOS 355 60 2. What is the profit maximizing for loss-minimizing) level of output for this firm? (Assume there are no fractional levels of output - the firm can produce two people caters or three people caters, but not 2.5 or 3.75 people-caters.) (5 points) 3. We usually say that the competitive firm maximizes profits by choosing the output level that makes MCMR - but that isn't exactly true here at the optimal level of people- cater output. Why not? (5 points) 4. What is the break-even price for this firm? (5 points) 5. At the profit-maximizing level of output, does this firm achieve productive efficiency? How do you know? (5 points) 2. What is the profit maximizing (or loss-minimizing) level of output for this firm? (Assume there are no fractional levels of output - the firm can produce two people eaters or three people eaters, but not 2.5 or 3.75 people-eaters.) (5 points) Exercise III: Profit maximization, the competitive firm, Fco 226, Kreier Revised Nov 13,2019 (61 points total, but I will record percentage score in gradebook) Name I. Below is a cost and revenue table for a perfectly competitive firm producing purple- sported people caters. Fill in the missing information assuming that market price is $246 points) MC ATC MR TR Profit 0 IOS 105 NA NA 105 135 30 135 1 2 IOS 160 25 80 3 105 180 20 60 4 195 15 IOS 105 48.75 43 5 215 20 6 105 250 35 IOS 295 45 7 8 41.67 42.14 44.375 TOS 355 60 2. What is the profit maximizing for loss-minimizing) level of output for this firm? (Assume there are no fractional levels of output - the firm can produce two people caters or three people caters, but not 2.5 or 3.75 people-caters.) (5 points) 3. We usually say that the competitive firm maximizes profits by choosing the output level that makes MCMR - but that isn't exactly true here at the optimal level of people- cater output. Why not? (5 points) 4. What is the break-even price for this firm? (5 points) 5. At the profit-maximizing level of output, does this firm achieve productive efficiency? How do you know? (5 points)
