Instructions Answer all of the questions below on separate sheets of lined paper
ID: 1117908 • Letter: I
Question
Instructions Answer all of the questions below on separate sheets of lined paper. Make sure your answers are expository, and numerically exact/precise. Be sure to defend numeric answers with relevant theoretical justifications numerie answers without theoretical expo- sition will not receive any credit. The exam is due in-class on 12/5/17 at 10:30AM. 1. "Just UUs" textbook company is the only seller of textbooks in Collegetown and faces the following demand and cost conditious: Price of Textbook ($) Quantity Sold Total Cost 60 58 56 54 52 50 48 46 16 64 100 144 196 a. If "Just Us" desires to maximize profit, what price will it charge for textbooks, and how many will it sell? b. How much profit will " Just Us" earn? 2. Redo #1 assuming that the demand and cost conditions are that of a perfectly competi- tive market for textbooks. 3. Given the cost conditions in #1, compute and depict the family of total, average and marginal costs (e.g. TC, TFC, TVC, ATC, AFC, AVC, MC). 4, Are the cost conditions in #1 representative of a short-run or long-run scenario why?Explanation / Answer
Question 1 Price Quantity Total Cost Marginal Cost Total Revenue Marginal Revenue Profit 60 0 0 0 0 58 1 4 4 58 58 54 56 2 16 12 112 54 96 54 3 36 20 162 50 126 52 4 64 28 208 46 144 50 5 100 36 250 42 150 48 6 144 44 288 38 144 46 7 196 52 322 34 126 Using the data given we will calculate the marginal cost ,total revenue, marginal revenue and profit Marginal Cost (MC) = (TC)n-(TC)n-1 Total Revenue = Price*Quantity Marginal Revenue = (TR)n - (TR)n-1 Profit = TR -TC a) Given that just Us is monoplist it will produce till Marginal revenue is greater than or equal to Marginal Cost Therefore it will produce Q =3 units and charge price = 54. b) AT this price profit as calculated in the table is $126 *-For solution to other question please post as anew question . We are restricted to solve one question at a time.