Microeconomics questions

1) The table below provides data for a competitive product.  Workers are paid $24 per day, materials cost $1 per unit, fixed costs are $2 per day and the going market price is $9 per unit.  

                  *fill in the blanks in the table below, and find the profit-maximizing level of output. 

                  *find the level of profit. 

Workers	Output  (or Q)	Labor  Cost	Material  Cost	FixedCost	Total  Cost	Marginal  Cost	Marginal Revenue (P)
10	5	$240	$5	$2			$9
11	29	264		$2			$9
12	41			$2			$9
13	47			$2			$9
14	50			$2			$9
15	52			$2			$9

 

2) For question (2), answer two of the options below: 

 

      a) If a competitive firm is making a short-run loss, would it be better to produce nothing at all or to continue operating at a loss?  Elucidate. 

       b) Compare the outcomes of a competitive firm and a monopolist (i.e., price, output, profit potential and any social costs).  

       c) You recently noted that a national beverage company generously assisted in renovations of the  basketball arena and library at a large state university, and university officials agreed to an exclusive beverage contract with the company.  Was this most likely a benevolent charitable act by the beverage company?  Elucidate. 

       d) Suppose that you own a golf course that is part of a Florida resort. You primarily serve two groups of people: local residents and tourists. Devise a price discrimination strategy that will increase your revenues compared to a single-pricing strategy.