This is for a test that I'm studying for in Economics. I never did understand this stuff. Here's what I have to figure out. I've never been good at Economics, but I'm trying to get this stuff down for my final. Any help would be appreciated. Thanks in advance.
Question 73 of 100
The following table represents price, quantity (Q), total revenue (TR), and cost (TFC=total fixed cost, TVC=total variable cost, TC=total cost, MC=marginal cost, AC=average cost) for a price taker.
Answer the following questions:
- This firm will maximize profit where Q = _______, where marginal revenue and marginal cost are roughly equal.
- Draw the firm's demand curve. Then sketch the marginal cost curve. Drop a line from the intersection to the horizontal axis and label it with the - - Q value that maximizes profit. This profit is $_______?
- Now instead of a price of $5, suppose the price equals $0.75 (75 cents). Which columns of numbers in the table can be compared to the price to prove that the firm should shut down?
-What is the amount of the firm's loss if it shuts down?
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- Thread Starter
- 12-07-2005 23:43