Economics chapter problems | Economics homework help

 

Chapter 22

 

Problems 1-5,11

 

1. Use the following to calculate profit at each quantity of output.

 

 

 

(Total) Output (Q)           Price (P)                               Total Revenue (TR)         Total Cost (TC)

 

0                              $1,900                   $ 0                                          $1,000

 

1                              $1,700                   $ 1,700                                  $2,000

 

2                              $1,650                   $ 3,300                                  $2,800

 

3                              $1,600                   $ 4,800                                  $3,500

 

4                              $1,550                   $ 6,200                                  $4,000

 

5                              $1,500                   $ 7,500                                  $4,500

 

6                              $1,450                   $ 8,700                                  $5,200

 

7                              $1,400                   $ 9,800                                  $6,000

 

8                              $1,350                   $10,800                                 $7,000

 

9                              $1,300                   $11,700                                 $9,000

 

 

 

 2. Use the table in exercise 1 to calculate marginal revenue and marginal cost.

 

3. Use the information in exercises 1 and 2 to graphically show maximum profit. Label the profit maximizing quantity and price, total cost, total revenue, and profit.

 

4. Can accounting profit be positive and economic profit negative? Can accounting profit be negative and economic profit positive? Explain.

 

5. Use the following information to calculate accounting profit and economic profit.

 

Sales $100

 

Employee expenses $40

 

Inventory expenses $20

 

Value of owner’s labor in any other enterprise $40

 

 

 

General                                Barclays Bank     Microsoft

 

Motors

 

Sales                      $50,091                                 $5,730                   $2,750

 

Wages and

 

salaries                                 $29,052                                 $3,932                   $ 400

 

Cost of capital    $12,100                 $ 750                     $ 35

 

Interest on debt               $ 7,585                  $ 275                      $ 5

 

Cost of materials              $ 6,500                  $ 556                      $1,650

 

 

 

11. Use the information in the table to calculate total revenue, marginal revenue, and marginal cost.  Indicate the profit-maximizing level of output. If the price was $3 and fixed costs were $5, what would

 

variable costs be? At what level of output would the firm produce?

 

 

 

Chapter 23.

 

Problems 1,14

 

 

 

1. Cost figures for a hypothetical firm are given in the following table. Use them for the exercises below. The firm is selling in a perfectly competitive market.

 

 

 

OutputFixed Cost      AFC      Variable Cost            AVC Total Cost ATC        MC

 

1              $50                                          $ 30

 

2              $50                                          $ 50

 

3              $50                                          $ 80

 

4              $50                                        $120

 

5              $50                                        $170

 

 

 

 a. Fill in the blank columns.

 

b. What is the minimum price needed by the firm to break even?

 

c. What is the shutdown price?

 

d. At a price of $40, what output level would the firm produce? What would its profits be?

 

 

 

14. Use the following data for the exercises below.

 

 

 

                Quantity                              Quantity

 

Price      Supplied                              Demanded

 

$20         30                           0

 

$18         25                           5

 

$16         20                           10

 

$14         15                           15

 

$12         10                           20

 

$10         5                             25

 

$ 8          0                              30

 

 

 

a. What is the equilibrium price and quantity?

 

b. Draw the demand and supply curves. If this represents perfect competition, are the  curves individual-firm or market curves? How is the quantity supplied derived

 

c. Show the consumer surplus. Show the producer surplus.

 

d. Suppose that a price ceiling of $12 was imposed. How would this change the consumer and producer surplus? Suppose a price floor of $16 was imposed. How would this change the consumer and producer surplus?

 

 

 

Chapter 24.

 

6,8

 

 

 

6. In the following figure, if the monopoly firm faces ATC1 , which rectangle measures total profit? If the monopoly firm faces ATC2 , what is total profit? What information would you need in order to know whether the monopoly firm will shut down or continue

 

producing in the short run? In the long run?

 

 

 

 

8. Consider the following demand schedule. Does it apply to a perfectly competitive firm? Compute marginal and average revenue.

 

 

 

Price      Quantity              Price      Quantity

 

$95         2              $55          5

 

$88         3             $40          6

 

$80         4             $22         7

 

 

 

 

 

Chapter 25

 

Problems 11,13

 

11. The cement industry is an example of an undifferentiated oligopoly. The automobile industry is a differentiated oligopoly. Which of these two is more likely to advertise? Why?

 

 

 

13. Use the payoff matrix below for the following exercises. The payoff matrix indicates the profit outcome that corresponds to each firm’s pricing strategy.

 

 

 

Firm A’s Price

 

$20                                         $15

 

$20         Firm A earns $40 profit  Firm A earns $35

 

Firm B earns $37 profit                   profit

 

                                                                Firm B earns $39

 

$15         Firm A earns $49 profit                 profit

 

                Firmt B earns $30 profitFirm A earns $38

 

profit

 

                                                                                Firm B earns $35

 

profit

 

 

 

a. Firms A and B are members of an oligopoly. Explain the interdependence that exists in oligopolies using the payoff matrix facing the two firms.

 

b. Assuming that the firms cooperate, what is the solution to the problem facing the firms?

 

c. Given your answer to part (b), explain why cooperation would be mutually beneficial and then explain why one of the firms might cheat.

 

Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on This Paper

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Custom Writings Help is a Quality-Oriented Company in Online Writing as a result of hiring exceptional professionals to execute clients' tasks.

Essays

Research Papers

At Custom Writings Help,We understand the struggle of research paper writing, and that is why at Custom WritingS Help, we are all out to help you. We pride ourselves on having a team of clinical writers. The stringent and rigorous vetting process ensures that only the 'BEST' Writers are chosen for the job. We have highly qualified Ph.D. and MA writers working with us; we equally offer these experienced writers specific bonuses and incentives to make them deliver highly original, unique, and informative content at reasonably low prices.

Admissions

Thesis Writing Service

Worlwide, Many Masters Students are struggling with Thesis Completion. A thesis is likely to be the longest and most challenging piece of work a student has ever completed. However, unlike essays and other assignments, a student can pick a particular interest topic and work on their initiative. Fortunately, we are there for you. At Custom Writings Help, you are assured of an authentic, imaginative, informative, linguistically great, and advantageous thesis that adheres to all your needs. So, why continue considering different writers when you have discovered the best in the field?

Editing

Custom Papers

Not a single student can avoid writing custom papers. However, a total lack of experience, skills, and time makes it very hard to produce a superb writing piece. Therefore, if you are seeking professional help, turn to us. Our specialized and experienced writers compose a variety of model papers, including custom essays, college term papers, research papers, book reports, MBA essays, executive summaries, dissertations, Ph.D. theses, admission essays, and research proposals for college and university students at any level.

Coursework

Essay Writing

Most of the students disregard the critical principles of essay writing and compose papers below sensible guidelines. Therefore, with Custom Writings Help, one should not worry about his/her essay. Our Writers compose informative and engaging content on all complexities and topics. We write meaningful and smart essays while prioritizing all aspects that bring about a good grade, such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines.

Coursework

Coourse Work Writing

Don't let the seemingly never-ending onslaught of writing assignments get you down. If you are looking where to get course work assistance online, the writers at Custom Writings Help are here to assist you with all of your writing needs. We undertake to unique delivery of papers that meet the professor's requirements. The content is proofread, edited, and checked plagiarism before submission to customers. No matter how big or small your work is, we will deliver on time. Try US Now! !

Coursework

Dissertation Writing Service

High-Quality Dissertation Writing Services are rare. They require Ph.D. academicians – not easily found. However, are an exception. The years, time, and resources we have invested in the dissertation world has given us a competitive advantage over others. Choose to come to Custom Writings Help; You will find perfect Ph.D. consultants who have written hundreds of dissertations theses ready to help you. Let our dissertation-writing services help you craft your dissertation, for you are assured we will give you the results.

See all services