Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ral neter anzedevifA Instructions: Type a price (between $20 and $70 ) into the Market Price box. Then, type a quantity (30140) into the Quantity

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
ral neter anzedevifA Instructions: Type a price (between $20 and $70 ) into the Market Price box. Then, type a quantity (30140) into the Quantity box, or use the slider to adjust the quantity. The tool will calculate the MR, MC, total revenue, total cost, and economic profit from producing that quantity and selling at the market price. Click 'Show ProfitLLss' above the graph to have the tool shade the firm's economic. profits or losses. a. Set the price level to $48. Adjust the quantity to the profit maximizing level, Tn maximize nenfits, thic firm should nendiure and cell inits a. Set the price level to $48. Adjust the quantity to the profit maximizing level. To maximize profits, this firm should produce and selt units. When profits are maximized, the firm earns profits of $ Report your answer to two decimal places. Include a negative sign if needed. b. In a real firm, this tool would not be very useful. The firm's cost curves may be different, and the price of the product may be one that doesn't even appear on the scale of this graph. Think about the short list of steps you just completed in step (a), and then list the things you would need to know to perform those same steps for a real firm. What information would you need to know to determine the quantity that maximizes profits for a different firm? Assume profits will be positive, so the firm does not need to be concerned about shutting down. (mark all that apply) total fixed costs average totol cost market price shutdown price average variable cost marginal cost aguines WNRE shutdown price average variable cost marginal cost What else would you need to know if you wanted to calculate what those maximized profits would be? (mark all that apply) shutdown price market price marginal cost average total cost total fixed costs averoge variable cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions