Customer Service Chat
Get quote & make Payment
PERFECT COMPETITION and THE SUPPLY CURVE & MONOPOLY, Microeconomics
Joe Brown’s dairy operates in a perfectly competitive marketplace. Joe’s machinery costs $500 per day and is the only fixed input. His variable costs are comprised of the wages paid to the few workers he employs at the dairy and the grain he feeds to his dairy cows.
The variable cost associated with each level of output is given in the accompanying table.
Gallons of Milk Variable Cost
1000 $ 2,100
2000 $ 2,200
3000 $ 2,900
4000 $ 3,680
5000 $ 5,180
a. Calculate the total cost, the average variable cost, the average total cost, and the marginal cost for each quantity of output.
Gallons of Milk FC VC TC MC AVC ATC
0 $500 - - - -
1000 500 $ 2,100 2600 2.10 26.00
2000 500 $ 2,200 2700 2.70 1.35 27.00
3000 500 $ 2,900 3400 1.70 1.13 11.30
4000 500 $ 3,680 4180 1.39 .92 10.45
5000 500 $ 5,180 5680 1.42 1.13 11.36
b. What is the break-even price?
c. What is the shut-down price?
d. Suppose that the price at which Joe can sell milk is $3 per gallon. In the short run, will Joe earn a profit?
e. In the short run, should he produce or shut down?
f. Now suppose that the price at which Joe can milk is $1.50 per gallon. In the short run, will Joe earn a profit?
g. In the short run, should he produce or shut down?
h. Finally, Suppose that the price at which Joe can sell milk is $0.50 per gallon. In the short run, will Joe earn a profit?
i. In the short run, should he produce or shut down?
Posted Date: 8/19/2012 3:25:45 PM | Location : United States
Ask an Expert
PERFECT COMPETITION and THE SUPPLY CURVE & MONOPOLY, Assignment Help, Ask Question on PERFECT COMPETITION and THE SUPPLY CURVE & MONOPOLY, Get Answer, Expert's Help, PERFECT COMPETITION and THE SUPPLY CURVE & MONOPOLY Discussions
Write discussion on PERFECT COMPETITION and THE SUPPLY CURVE & MONOPOLY
Your posts are moderated
Write your message here..
What do you meant by real gdp, Q. What do you meant by Real GDP? Real G...
Q. What do you meant by Real GDP? Real GDP:Value of total gross domestic product (which is, all the services and goods produced for money in the economy) adjusted for effects o
What is the benefit of economics in our life, What is the benefit (main wor...
What is the benefit (main work) of economics in our life? Economics plays a very important role in development of a country. A country's economy shows the stability of that co
Factors shifting demand curve, Factors Shifting Demand Curve -
Factors Shifting Demand Curve -
Problems and its solution of microecnomics, #question#.problems and its sol...
#question#.problems and its solution of microecnomics
Help, A firm is currently operating where the MC of the last unit produced ...
A firm is currently operating where the MC of the last unit produced = $84, and the MR of this unit = $70. What would you advise this firm to do?
How does a firm maximize their total revenue, The definition of a price mak...
The definition of a price maker is states as “firm with some power to set the price bcoz the demand curve for its output slopes downward”, that in effect, mean those firms with a d
Price discrimination and bundling, We consider two regions A and B. Each ma...
We consider two regions A and B. Each market has the same size (i.e. number of consumers) but differs in the willingness to pay for one unit of the good proposed by the firm. On ma
Micro economics, what is the theory of second best? prove the theorem with ...
what is the theory of second best? prove the theorem with the help of a diagram.
International Buffer Stock Agreements, #question about International Buffer...
#question about International Buffer Stock Agreements, define International Buffer Stock Agreements with briefly. International Buffer Stock Agreements seek to stablise the commod
What is development economics, What is development economics? Traditio...
What is development economics? Traditional economics studies the allowance of scarce resources among alternative uses. Development economics seems at the economic, politica
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Terms & Conditions
Copyright by ExpertsMind IT Educational Pvt. Ltd.