Question
Continued from the previous question and depending on the information proved in this question and the equations (not the tables) in the previous question, Fill
Continued from the previous question and depending on the information proved in this question and the equations (not the tables) in the previous question, Fill the following blanks in numbers with rounding to the nearest integer. Do not put dollar signs in the blank.
This DustyDevils Company sells its output in a perfectly competitive market. Total costs (TC) in the equation in the previous question include an "normal" return on the time (labor services) and capital that the owner has invested in the firm. The prevailing market price is $9 per unit.
g. Where P=MR=$________ and MC=$____ at Q1=1.7 units and Q2=_________units. The profit at Q1 is $54.48, and the profit at Q2 is $__________.
h. Therefore, in the short-run, the profit-maximizing output level Q*=Q1 or Q*=Q2 if the revenue can cover the _________. (fill this blank by the term in words)
i. From the results we derived at Q*=Q1, should DustyDevils Company be closed and exit the market? (fill Y or N in the blank)_________
j. From the results you derived at Q*=Q2, should DustyDevils Company be closed and exit the market? (fill Y or N in the blank)________
k. Is the industry at this point in long-run equilibrium? (fill Y or N in the blank)________
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