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 is exchange rate, Q. What is Exchange Rate? Exchange Rate: The ‘pr...
Q. What is Exchange Rate? Exchange Rate: The ‘price' at which currency of one country can be converted into the currency of another country. A country's currency is ‘strong,'or
Economics, what is the differences between utility theory, indifference the...
what is the differences between utility theory, indifference theory and revealed preference theory
Engineering production function, a description of engineering production fu...
a description of engineering production function
Assignment , I need someone to solve my assignment
I need someone to solve my assignment
Social cost of monopoly, Price Discrimination: occurs when the same produc...
Price Discrimination: occurs when the same product is sold at different prices to different consumers. A monopolist divided his consumers into groups and sells his product at vary
Lnternational trade, state 3 major assumptions which a production posibilit...
state 3 major assumptions which a production posibility is based
Explain the concept of opportunity cost, The concept of opportunity cost oc...
The concept of opportunity cost occupies a very important place in modern economic analysis. The opportunity cost of any good is the next best alternative goods that are sacrificed
Market-friendly reforms, Market-Friendly Reforms: One main shortcoming...
Market-Friendly Reforms: One main shortcoming of present development cooperation is that recipients of development cooperation is that recipients of development finance are d
Marginal productivity theory, explain the marginal produtivity theory
explain the marginal produtivity theory
Calculate the price of a forward contract, Commodities A) It i...
Commodities A) It is well documented that commodity prices are very volatile when compared to other asset classes. Discuss factors that cause volatility in the commod
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.