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Unformatted text preview: a. Write down this Price-Taken firm’s total revenue function. b. What would be the market price this Price-Taken firm is facing? (Hint: MR = P, MR is the slop of TR) c. If the firms operates at X=200, estimate its total variable cost? (TC=FC+TVC) d. If the firm shuts down, how much is its loss? e. Estimate the range of output where the firm’s profit is negative. f. Estimate the range of output where the firm’s profit is positive and increasing as its output increase . g. Estimate the range of output where the firm’s TR is greater than its TC and meanwhile, the increasing in its TR is slower than the increasing in its TC as its output increase. h. Estimate the firm’s optimal level of output. i. Estimate the firm’s maximum profit under the current market price....
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This note was uploaded on 10/20/2011 for the course ECO 108 taught by Professor Wolman during the Spring '08 term at SUNY Stony Brook.
- Spring '08