ECON 201 Final: ECON 201 Final Exam
467 views18 pages
Get access
Grade+
$40 USD/m
Billed monthly
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Related Documents
Related Questions
Suppose that a monopolistic competitive firm must build a production facility in order to produce a product. The fixed cost of this facility is FC = $24. Also, the firm has a constant marginal cost, MC = $3. Demand for the product that the firm produces is given by P = 27-3Q.
a) Fill in the table below.
Quantity of Output | Price | Total Cost | Average Total Cost | Total Revenue | Profits |
---|---|---|---|---|---|
1 | |||||
2 | |||||
3 | |||||
4 | |||||
5 | |||||
6 | |||||
7 | |||||
8 | |||||
9 |
b) How much output will this firm produce if it maximizes profit?
c) What price should this firm charge if it wants to maximize profit?