Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following demand-and-cost information for a profit-maximizing firm, to answer the questions that follow. Price where Q is zero = R2200 P* = R2000

Use the following demand-and-cost information for a profit-maximizing firm, to answer the questions that follow. Price where Q is zero = R2200 P* = R2000 Lerner index = 0.9 AVC at Q* = R750 AFC at Q* = R190 Total Variable Cost at Q* = R30000 Price at allocative efficient output level = R1400 The allocative efficient level of output = 80 units MC where Q is zero = R8 4.1. Assuming profit maximization behavior, calculate each of the following for the firm. Q* =________________ Mark-up =_____________________ MC = R___________________ TFC = R______________________ ATC = R_______________ Profit/loss = R_________________ Consumer surplus =________________ DWL =___________________ 4.2 Calculate each of the following at an allocative efficient level of outcome. Consumer surplus = ______________________ Producer surplus =_____________________ AFC =_________________________

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_2

Step: 3

blur-text-image_3

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

Financial Accounting

Authors: Jan Williams, Susan Haka

17th Edition

126000645X, 9781260006452

More Books

Students also viewed these Economics questions

Question

2. The purpose of the acquisition of the information.

Answered: 1 week ago

Question

1. What is the meaning of the information we are collecting?

Answered: 1 week ago