Microeconomics milestone 3.docx - 1 Product Price $20.50...

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1 Product Price Unit Cost Quantity Sold Quantity Produced Opportunity Cost $20.50 $10.25 500 800 $550 Calculate the firm’s accounting profit from the data shown above. –$1,500 $2,050 –$11,275 $1,500
CONCEPT Accounting Profit 2 Which of the following market structures has only one seller, who acts as a price maker? CONCEPT
Monopoly 3
Using the data provided, what production quantity would represent output optimization for this firm? CONCEPT
Output Optimization: Marginal Revenue / Marginal Cost 4 Number of Employees Total Production Marginal Product of Labor Marginal Rev Product 0 0 0 1 19 19 2 50 31 3 75 25 4 96 21
5 111 15 Based on the data in this table, how many employees should the company hire in order to maximize their profit if the price of product is $5 and cost of each worker is $100? CONCEPT
Output Optimization: Marginal Revenue Product 5 Based on the graph above, should the firm increase, decrease or stay at current levels of production to maximize profit? Decrease until total revenue is at its highest point Increase until the slope of the total revenue curve and total cost curve are equal Decrease until total cost is at its lowest point
Increase until the total revenue curve and total cost curve intersect CONCEPT Output Optimization: Total Revenue / Total Cost 6 Which example below represents an oligopoly?

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