--%>
Assignment Help - homework help

Question 7

Question 7: You are given the following data about two firms: FIRM A Quantity 0 1 2 3 4 5 6 Total revenue ($) 0 10 20 30 40 50 60 Average revenue ($) ___ ___ ___ ___ ___ ___ ___ Marginal revenue ($) ___ ___ ___ ___ ___ ___ Total cost ($) 30 42 50 60 76 100 140 Marginal cost ($) ___ ___ ___ ___ ___ ___ Average cost ($) ? ___ ___ ___ ___ ___ ___ FIRM B Quantity 0 1 2 3 4 5 6 Total cost ($) 100 134 154 177 216 266 366 Average cost ($) ? ___ ___ ___ ___ ___ ___ Marginal cost ($) ___ ___ ___ ___ ___ ___ Price ($) 140 130 120 110 100 90 80 Marginal revenue ($) ___ ___ ___ ___ ___ ___ Total revenue ($) ___ ___ ___ ___ ___ ___ ___ (a) Complete the two tables above. (4 marks) (b) Are these firms operating in the short or the long run? (1 mark) Firm A: short run / long run Firm B: short run / long run (c) Are these firms operating under perfect or imperfect competition? Firm A: perfect / imperfect (1 mark) Firm B: perfect / imperfect (c) What level of output will these firms produce in the short run? Firm A: (2 marks) Firm B: (d) How would you describe their profit positions? (2 marks) Firm A: Firm B:

   Related Questions in Business Economics

  • Q : Our junior high school serves a

    Comment on the following statement from a newspaper article:  “Our junior high school serves a splendid hot meal for $1 without costing the taxpayers anything, thanks in part to a government subsidy.”

    		•
  • Q : Define Direct and inverse relationships

    Define Direct and inverse relationships?

    		•
  • Q : Cchange in demand and a change in the

    Distinguish between a change in demand and a change in the quantity demanded?

    		•
  • Q : Distinguish between the resource market

    Distinguish between the resource market and product market in the circular flow model.  In what way are businesses and households both sellers and buyers in this model?  What are the flows in the circular flow model?

    		•
  • Q : Demand Q X= 600- 6PX + 20I +0.4PY c.

    Q X= 600- 6PX + 20I +0.4PY c. Suppose PX increases by 10%, by what percentage would sales decrease? Explain how this price increase affect total revenues from good X.

    		•
  • Q : How government might manipulate its

    Explain how government might manipulate its expenditures and tax revenues to reduce unemployment?

    		•
  • Q : Elucidate Participants in international

    Elucidate Participants in international trade of U.S. and World Trade?

    		•
  • Q : Example of public goods Drinking at a

    Drinking at a public water fountain is: (w) a public good because anyone may drink from it. (x) results in a negative externality because others can’t drink from this at similar time. (y) a positive externality because you are benefiting by other’s provisi

    		•
  • Q : Meaning of invisible hand according to

    Adam Smith’s opinion of an “invisible hand” powerfully implies the meaning that: (w) pursuit of individual self interest must be controlled. (x) most people lose sight of what’s good for society. (y) most peopl

    		•
  • Q : Definition of Full Employment

    Definition of “Full Employment”?

    		•