ECON 248 Lecture 4: Econ 2020A - 16 Sept 2019
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Related Questions
| Quantity | Total Cost | Average Cost | Marginal Cost |
| 0 | $4 | $4 | $5 |
| 1 | $9 | $9 | ($3) |
| 2 | $13 | $7 | ($1) |
| 3 | $16 | $5 | ($1) |
| 4 | $18 | $5 | ($0) |
| 5 | $22 | $4 | $0 |
| 6 | $28 | $5 | $0 |
| 7 | $36 | $5 | $1 |
| 8 | $46 | $6 |
Question 13: Find the monopolist's equilibrium quantity
Question 14: What is the equilibrium price?
Question 15: What is the firm's fixed cost?
Use the table below to calculate the marginal revenue.
|
Price |
Quantity Demanded |
Total Revenue |
|
5 |
0 |
0 |
|
4.5 |
1 |
4.5 |
|
4 |
2 |
8 |
|
3 |
3 |
9 |
|
3 |
4 |
12 |
|
2.5 |
5 |
12.5 |
|
2 |
6 |
12 |
|
1.5 |
7 |
10.5 |
|
1 |
8 |
8 |
|
0.5 |
9 |
4.5 |
|
0 |
10 |
0 |
Consider the following two cash flows representing two mutually exclusive projects. Which project should you accept at 10% interest assuming there is no do-nothing alternative
GIVEN INFORMATION
PROJECT A:
| YEAR 0 | AMOUNT $-100,000 |
| 1 | $-50,000 |
| 2 | $30,000 |
| 3 | $30,000 |
| 4 | $30,000 |
| 5 | $30,000 |
| 6 | $30,000 |
| 7 | $30,000 |
| 8 | $75,000 |
PROJECT B:
| YEAR 0 | AMOUNT $-100,000 |
| 1 | 0 |
| 2 | $50,000 |
| 3 | 0 |
| 4 | $50,000 |
| 5 | 0 |
| 6 | $50,000 |
| 7 | 0 |
| 8 | $50,000 |