microeconomics
Hz_26
micro_3.xlsxSheet1
| NAME: | |||||||||
| Answer the following questions by filling in the blanks or writing in the appropriate answer. | |||||||||
| Q | Total Cost | Market Price | Total Revenue | Total Profit | Average Total Cost | Average Variable Cost | Marginal Cost | Marginal Revenue | |
| 0 | $10.00 | $0.00 | -$10.00 | ||||||
| 1 | $15.00 | $0.00 | -$15.00 | $15.00 | $5.00 | ||||
| 2 | $18.00 | $0.00 | -$18.00 | $9.00 | $4.00 | ||||
| 3 | $20.00 | $0.00 | -$20.00 | $6.67 | $3.33 | ||||
| 4 | $21.00 | $0.00 | -$21.00 | $5.25 | $2.75 | $1.00 | |||
| 5 | $23.00 | $0.00 | -$23.00 | $4.60 | $2.60 | $2.00 | |||
| 6 | $26.00 | $0.00 | -$26.00 | $4.33 | $2.67 | $3.00 | |||
| 7 | $30.00 | $0.00 | -$30.00 | $4.29 | $2.86 | $4.00 | |||
| 8 | $35.00 | $0.00 | -$35.00 | $4.38 | $3.13 | $5.00 | |||
| 9 | $41.00 | $0.00 | -$41.00 | $4.56 | $3.44 | $6.00 | |||
| 10 | $48.00 | $0.00 | -$48.00 | $4.80 | $3.80 | $7.00 | |||
| 11 | $56.00 | $0.00 | -$56.00 | $5.09 | $4.18 | $8.00 | |||
| Question 1. Assume the above cost structure and further assume the firm in question is a perfectly competitive firm. | |||||||||
| If the market price is $6: | If the market price is $2: | What is Long Run Equilibrium *Price? | |||||||
| What is Q? | What is Q? | What is *Q? | |||||||
| What is total revenue? | What is total revenue? | What Situation is the firm in? | |||||||
| What is total cost? | What is total cost? | *P and Q are approximate | |||||||
| What Situation is the firm in? | What Situation is the firm in? | ||||||||
| Question 2. Assume the above cost structure and further assume the firm in question is a monopolistically competitive firm. | |||||||||
| If the market price is $10 and Marginal Revenue =$2: | If the market price is $3 and Marginal Revenue =$2: | If Long-Run Marginal Revenue=$1 | |||||||
| What is Q? | What is Q? | What is Long Run Equilibrium Price? | |||||||
| What is total revenue? | What is total revenue? | What is Q? | |||||||
| What is total cost? | What is total cost? | What Situation is the firm in? | |||||||
| What Situation is the firm in? | What Situation is the firm in? | P and Q are approximate | |||||||
| Question 3: Under what conditions can a monopoly earn Long-Run economic Profits? | |||||||||
| Question 4: Why does an oligopoly want to collude? |
Cost Structure from Above
Average Total Cost 0 1 2 3 4 5 6 7 8 9 10 11 15 9 6.666666666666667 5.25 4.5999999999999996 4.333333333333333 4.2857142857142856 4.375 4.5555555555555554 4.8 5.0909090909090908 Marginal Cost 0 1 2 3 4 5 6 7 8 9 10 11 1 2 3 4 5 6 7 8 Average Variable Cost 5 4 3.3333333333333335 2.75 2.6 2.6666666666666665 2.8571428571428572 3.125 3.4444444444444446 3.8 4.1818181818181817
