handout-5ans

Handout-5ans - Handout 5 Answers Pure Competition A Q 0 1 2 3 4 5 6 P 15 15 15 15 15 15 15 TR 0 15 30 45 60 75 90 TC 10 21 30 41 54 69 86 Total

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Handout 5 Answers: Pure Competition A) Q P TR TC Total Econ. Profit or Loss MR MC ATC 0 15 0 10 -10 15 --- 11 5 1 5 2 1 - 6 1 5 1 1 2 1 2 15 30 30 0 15 9 15 3 15 45 41 4 15 11 13.6 4 15 60 54 6 15 13 13.5 5 15 75 69 6 15 15 13.8 6 15 90 86 4 15 17 14.3 Per Unit Profit = 15.00 – 13.80 = 1.20 Total Profit = 1.20 X 5 Pizzas = $6.00 B) From (A) ATC @ 3 Pizzas = $13.67 – $11.00 (AR) = $-2.67 per unit loss Total Loss = $-2.67 X 3 = $-8.01 Loss P Max 15 13.8 P=AR=MR=D Q Max 5 Pizzas $ AVC Q 0 ATC ! ! ! ! MC
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Q MR MC TR TC Total Profit or Loss 0 $11 --- $10 $ -10 1 11 $11 $11 21 -10 21 192 2 3 0 - 8 3 1 11 13 34 1 - 8 L o s s M i n 4 1 45 4 - 1 0 5 1 55 56 9 - 1 4 6 1 76 68 6 - 2 0 TC $ MC Q Min 3 Pizzas
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This note was uploaded on 10/26/2009 for the course ECON 180-004-20 taught by Professor Bresnock during the Fall '09 term at UCLA.

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Handout-5ans - Handout 5 Answers Pure Competition A Q 0 1 2 3 4 5 6 P 15 15 15 15 15 15 15 TR 0 15 30 45 60 75 90 TC 10 21 30 41 54 69 86 Total

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