Calculate his producer surplus and his profits

Assignment Help Econometrics
Reference no: EM131248621

A producer operating in a perfectly competitive market has chosen his output level to maximize profit. At that output, his revenue and costs are as follows:

1736_27caf8e8-cf26-4424-8640-87d368f0c750.png

Calculate his producer surplus and his profits. Which (if either) of these should he use to determine whether he should exit the market in the short run? Briefly explain.

Reference no: EM131248621

Questions Cloud

What does this imply about the firm''s economic profits : A competitive, profit-maximizing firm operates at a point where its short-run average cost curve is upward sloping. What does this imply about the firm's economic profits? Briefly explain.
What is the throughput of csma in the limiting case : What is the throughput of CSMA in the limiting cases a → 0 and G → ∞? (Bellman-Ford) For the network of figure 22.8 find the shortest path from node A to node C using the Bellman-Ford algorithm.
Draw the shop''s total revenue and total cost curves : Draw the shop's total revenue and total cost curves, and graph the total profit function on the same diagram. Using your graph, state (approximately) the profit-maximizing quantity in each case
Identify when people from this region immigrated : Examine this group's initial experience in America and how it changed over time. Was the United States fundamentally changed by this group's immigration? Why, or why not? Utilize proper grammar and university-level writing skills.
Calculate his producer surplus and his profits : Calculate his producer surplus and his profits. Which (if either) of these should he use to determine whether he should exit the market in the short run? Briefly explain.
Is the term republican motherhood misleading : Did Madison, Monroe, and John Quincy Adams successfully represent the Party as Jefferson intended when he founded it? Where might Jefferson have directly fought against his successors?
Global financial and economic crisis on hrm practices : Critically assess the impact of the 2008 global financial and economic crisis on HRM practices in organizations. The assignment question reflects some core themes addressed during the ABP HRM module. The aim of the assignment is to encourage students..
Find the shortest path from node a : Dijkstra example:-  For the network of given figure, find the shortest path from node A to every other node using Dijkstra's algorithm.
Develop a strong team with solid expectations : Create and develop a strong team with solid expectations: - I need to create a team atmosphere within my team with a sense on mission. I need to share my vision of what the organization can be, so that the team have a common purpose. Before I begi..

Reviews

Write a Review

Econometrics Questions & Answers

  What will be the single market price each firm will charge

Suppose you are a monopolist able to produce your chosen output at a constant average (and thus marginal) cost of ATC = MC = $5. You face a market demand curve given by Q = 53 - P or inverse demand given by P = 53 - Q, where Q is the output provid..

  Compute a consumer price index for apples for each year

Abby consumes only apples. In year 1, red apples cost 1$ each, green apples 2$ each, and Abby buys ten red apples. In year 2, red apples cost $2, green apples cost $1, and Abby buys 10 green apples.

  How many units of two types of lawn mowers to produce a day

Billy Penny is trying to determine how many units of two types of lawn mowers to produce each day. One of these is the Standard model, while the other is the Deluxe model. The profit per unit on the Standard model is $60, while the profit per unit..

  How does moving first reduce the revenue destruction effect

In the Cournot model (see Chapter 5), the revenue destruction effect limits the willingness of firms to expand output. In the Stackelberg model, the firm that moves first produces more than it does in Cournot's model. How does moving first reduce ..

  What sales-output level will marginal costs reach a minimum

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 123034.4703 23311.13897 5.277926165 0.000358709 71094.01589 174974.9248 71094.01589 174974.9248 y 0.238078372 0.017797354 13.37717818 1.04516E-07 0.19842..

  What specific policy views does that person advocate

Choose a Fed governor or a regional Reserve Bank president and try to determine whether that person leans more toward an active or a passive policy view. What specific policy views does that person advocate?

  A country is described by the solow model with a production

a country is described by the solow model with a production function y k12 where y is output per worker and k is

  What are the gains from collusion

Why is there an incentive for each member of a cartel to cheat by producing more than the agreed-on amount? What is the "prisoner's dilemma" and how is it related to the problem of cheating? What are the other problems facing cartels?

  What are the impact and long-run propensities

In an equation for annual data, suppose that: unempt  = 2.7 - .68 inft  - .25 inft-1 + .33 inft-2 + ut, where unempt is an unemployment rate at time t and inft is the inflation rate. What are the impact and long-run propensities

  Show the monopolists choice of a price and quantity

At the profit-maximizing quantity, what is the price elasticity of demand? If the spring were owned by a government that applied the marginal principle, what price would it charge?

  How does the demand for bonds vary with the price of bonds

Consider a bond that promises to pay $100 in one year. a. What is the interest rate on the bond if its price today is $75? $85? $95 b. What is the relation between the price of the bond and the interest rate c. If the interest rate is 8%, what is the..

  The demand for personal computers has been estimated to be

the demand for personal computers has been estimated to be q 500000 - 700p 200i - 500s. assume that per capita income

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