Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Herriott's is the only veterinary clinic in a remote village. The firm's total fixed cost is $500 a day and its marginal cost is

 

Herriott's is the only veterinary clinic in a remote village. The firm's total fixed cost is $500 a day and its marginal cost is zero. The table gives the demand schedule for visits. Price (dollars per visit) 100 80 60 40 20 0 Draw the firm's demand curve. Label it D. Draw the firm's marginal revenue curve. Label it MR. Draw the firm's marginal cost curve. Label it MC. Draw a point at the profit-maximizing price and output. What is Herriot's economic profit? Quantity (visits per day) 0 8 16 24 32 40 Herriot's economic profit is $ a day. >>> If the firm incurs an economic loss, indicate the loss with a minus sign. If the firm makes an economic profit, do not include a plus sign. 120- 100- 80- 60- 40- 20- 0- Price and cost (dollars per visit) 0 16 24 32 Quantity (visits per day) >>> Draw only the objects specified in the question 8 40 48 Q

Step by Step Solution

3.53 Rating (160 Votes )

There are 3 Steps involved in it

Step: 1

Understood Here is my response 1 Drawing the firms demand curve I have drawn the demand curve labele... 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

Economics Principles and Policy

Authors: William J. Baumol, Alan S. Blinder

12th edition

978-0538453677, 538453672, 978-0538453622, 538453621, 978-0538453653

More Books

Students also viewed these Economics questions

Question

Why did marketing research expand by the 1930s?

Answered: 1 week ago