"> (Answered) ECON 562 THIRD PROBLEM SET (20 pts) NAME:____________________________ 1. A firm has the following total costs, where Q is output and TC is total - Tutorials Prime

## (Answered) ECON 562 THIRD PROBLEM SET (20 pts) NAME:____________________________ 1. A firm has the following total costs, where Q is output and TC is total

ECON 562 THIRD PROBLEM SET (20 pts) NAME:____________________________ 1. A firm has the following total costs, where Q is output and TC is total

THIRD PROBLEM SET (20 pts)

NAME:____________________________

1.

A firm has the following total costs, where Q is output and TC is total cost:

Q

TC

\$ 100

1

110

2

130

3

160

4

200

5

250

6

310

7

380

8

460

9

550

10

650

11

760

a.

Say the firm is in a perfectly competitive market. If the current market (equilibrium) price

is \$ 60, at what output level will the firm as a profit maximizer produce at?

b.

Say the market price rises to \$ 80. At what output level (as a perfect competitor) will this

produce at?

c.

How much profit is the firm making at a price of \$80? Based on this calculation, do you

expect firms to enter or leave this market?

d.

Say instead this firm is a monopoly. If the firm maximizes profit at an output level where

marginal revenue equals \$ 50, at what output level will this be?

2.

(6 pts) A market has six competitors in it, with the following total sales amounts:

FIRM

Total sales

A

\$ 400 (million)

B

300

C

500

Solution details:
STATUS
QUALITY
Approved

This question was answered on: Jan 02, 2020

Solution~000.zip (25.37 KB)

STATUS

QUALITY

Approved

Jan 02, 2020

EXPERT

Tutor

#### YES, THIS IS LEGAL

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

• As a reference for in-depth understanding of the subject.
• As a source of ideas / reasoning for your own research (if properly referenced)
• For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

### Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.