Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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)________

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Microeconomics 3e By OpenStax

Authors: OpenStax

3rd Edition

1711471496, 978-1711471495

More Books

Students also viewed these Economics questions