Explore BrainMass
Share

Explore BrainMass

    Revenue (demand) and cost situation facing an individual firm

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Please see attached.

    8. Assume the table above shows the revenue (demand) and cost situation facing an individual firm. Further assume this firm has a Total Revenue equation that can be expressed as TR = 20Q. Based on that, answer the following.
    A. In the table above, fill in the missing values for Price, Total Revenue, Marginal Revenue (MR), Average Total Cost, and Marginal Cost.
    B. What is the profit maximizing output and price for this firm? Explain how you reached your answer.
    C. If this firm operates at its profit maximizing position, what will its profit (or loss) be? Show your work.
    D. Describe the type of market structure in which this firm operates and whether the table indicates a short run or long run position. Explain your answers.

    © BrainMass Inc. brainmass.com October 10, 2019, 4:40 am ad1c9bdddf
    https://brainmass.com/economics/output-and-costs/revenue-demand-cost-situation-facing-individual-firm-471842

    Attachments

    Solution Preview

    Please see attachment.

    Output Price Total Revenue MR Total Cost Average Total Cost Marginal Cost
    1 - 50 -
    2 60 30
    3 60 68
    4 78
    5 93
    6 113
    7 140 27

    8. Assume the table above shows the revenue (demand) and cost situation facing an individual firm. Further assume this firm has a Total Revenue equation that can be expressed as TR = 20Q. Based on that, answer the following.
    a. In the table above, fill in the missing values for Price, Total Revenue, Marginal Revenue (MR), Average Total Cost, and Marginal Cost.
    Output (O) Price (P) Total Revenue (TR) MR ...

    Solution Summary

    The expert examines revenue demand and cost situation facing an individual firm.

    $2.19