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Competitive Market Worked Problems

Özellikle ikinci problemin benzeri Marka Uzman Yardımcılığı Sınavında (2012 ) çıkmıştır Problem 1  P Suppose a competitive firm's cost information is as shown in the table below. Its total fixed cost is $9.00.                            Output Marginal Cost Average Variable Cost Average Total Cost 0 1 $ 8.00 $8.00 $17.00 2 7.00 7.50 12.00 3 6.00 7.00 10.00 4 5.00 6.50 8.75 5 6.00 6.40 8.20 6 7.00 6.50 8.00 7 8.00 6.71 8.00 8 9.00 7.00 8.13 9 10.00 7.33 8.33 10 11.00 7.70 8.60 Suppose the firm sells its output at a price of $9.10. What is the firm's marginal revenue (MR)? Compare MR to marginal cost (MC) to determine the firm’s profit maximizing (loss-minimizing) output level. Be sure to check whether or not the firm should shut down. What is the firm's per-unit profit (loss) at this output level? What is the firm's total profit (loss) at this output level? Repeat parts a. ...