Explain a normal profit and an economic profit

Assignment Help Microeconomics
Reference no: EM131123371

MicroEconomic Market Forms

For this assignment you will do a significant portion of work in MS Excel and import it into an MS Word document for submission. You will use the data below to address Price and Output decisions faced by firms that are not in pure competition. Some numbers may be rounded.

Table 1
Output Average Fixed cost Average Variable Cost Average Total Cost Marginal Cost Price Total Revenue Marginal Revenue

Output

Average Fixed cost

Average Variable Cost

Average Total Cost

Marginal Cost

Price

Total Revenue

Marginal Revenue

0





$ 345.00



1

$ 180.00

$ 135.00

$ 315.00


$ 300.00



2

$ 90.00

$ 127.50

$ 217.50


$ 249.00



3

$ 60.00

$ 120.00

$ 180.00


$ 213.00



4

$ 45.00

$ 112.50

$ 157.50


$ 189.00



5

$ 36.00

$ 111.00

$ 147.00


$ 165.00



6

$ 30.00

$ 112.50

$ 142.50


$ 144.00



7

$ 25.71

$ 115.70

$ 141.41


$ 126.00



8

$ 22.50

$ 121.90

$ 144.40


$ 111.00



9

$ 20.00

$ 130.00

$ 150.00


$ 99.00



10

$ 18.00

$ 139.50

$ 157.50


$ 87.00



Address the following:

1. Complete Table-1. Summarize your calculations.

2. Prepare a graph showing:

o Average Fixed Costs
o Average Variable Costs
o Average Total Costs
o Marginal Revenue
o Marginal Costs

• Using the data in the table and on your graph, explain the profit maximizing, or loss minimizing level of output.

• Define a normal profit and an economic profit. Are normal profits being earned in this example? Are economic profits present for this firm in this example? Explain your answers.

• Given the data in the table and the graph, what type of market structure could this be in the short run? Explain your answers.

• If the data in Table-1 represents the long run, what type of firm must this data represent? Explain your answers.

Quotations, paraphrases, and ideas you get from books, articles, or other sources of information should be cited using APA style.

Reference no: EM131123371

Questions Cloud

Happiness creates more productive workers : Support (evidence): a premise that helps prove (deductively or inductively) that reason 1 is correct or convincing.
Should us government play in health care coverage : What role, if any, should the U.S. Government play in health care coverage for Americans? Should the government's role in terms of health insurance be different for those with jobs and for those without jobs?
Determines the amounts of nonfat milk : Set up a matrix equation whose solution determines the amounts of nonfat milk, soy flour, whey, and isolated soy protein necessary to supply the precise amounts of protein, carbohydrate, fat, and calcium in the Cambridge Diet. State what the varia..
What is the slope of a line tangent curve : Let the curve C1 be given by r = 3: and curve C2 be given by r = 2 + 2sinθ, both with 0 ≤ θ ≤ 2π. What is the slope of a line tangent ot curve C2 at the point with θ = π/4
Explain a normal profit and an economic profit : Define a normal profit and an economic profit. Are normal profits being earned in this example? Are economic profits present for this firm in this example? Explain your answers.
School and community resources : Imagine you are a parent of an elementary-age student and you have recently moved to your neighborhood. Spend 6 hours investigating the following:
Define which would be better medication for both sore throat : He found that the number of returned planes that had damage to the fuselage was far greater than those that had damage to the engines. His recommendation was to enhance the reinforcement of the engines rather than the fuselages. If damage to the..
Explain the wide discrepancy between these rates : What do you believe is the correct regulatory response to these types of lenders?
Collaboration with parents and facilities : 3-COLLABORATION with WITH PARENTS AND FAMILIES   What can a teacher learn from the family of a child with disabilities?  In what ways might a child's disability affect the family system and parents' roles?

Reviews

Write a Review

 

Microeconomics Questions & Answers

  What dilemma faces regulators attempting to regulate

what dilemma faces regulators trying to regulate natural monopolies? distinguish among private goods public goods

  Identify instance where price control is used in our markets

Identify an instance where a price control is used in our markets. Why do you think this price control exists? Also discuss the possible negative effects it may have on the market

  Use a graphical illustration to describe briefly what the

use a graphical illustration to describe briefly what the influence of each of the following would be on the market

  Determine the book value of it at the end of year

A company has purchased a railroad car to transport coal from the mines to its power plants. The company can depreciate the car using MACRS method. The book value of the car at the end of year one is $1,157,085. Determine the book value of it at the ..

  Use the mundell-fleming model to predict

Use the Mundell-Fleming model to predict what would happen to aggregate income, the exchange rate, and the trade balance under both floating and fixed exchange rates in response to each of hte following shocks.

  Is the effect of higher taxes on output smaller or greater

Using the basic IS-LM model in the open economy, analyze the effects of tax increases on the equilibrium output (Y), nominal interest rate (i) and the nominal exchange rate (E). Is the effect of higher taxes on output smaller

  Calculating output, price and total revenue

Ageless Corporation has a patent for a new promising age defying moisturizer cream. The yearly demand, marginal revenue, and marginal cost functions for this cream is given:

  Explain difference of inter-industry and intraindustry trade

In your own words, please explain the difference between inter-industry and intra-industry trade. How is the phenomenon of horizontal intra-industry trade related to product diversification?

  In cast away islands there is only one company

in cast away islands there is only one company allelectronics which produces tv. it is the sole employer of engineers

  Topic this position paper is about the role of

topic this position paper is about the role of multinational corporations in business government and society. the

  What occurs if during one hour syldavia aluminum company

the rules of the syldavian electricity market stipulate that all participants must trade energy exclusively through the

  Felix and kim are farmerseach one owns 5 acres of land the

felix and kim are farmers.each one owns 5 acres of land the following table shows the amount of corn and alfelfa each

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd