Please give the solution for the above question Quantity of Production (Thousand
ID: 1124143 • Letter: P
Question
Please give the solution for the above question
Quantity of Production (Thousand of Bushela) hounds of dollars) Total Cost 10 20 30 40 50 60 70 50 85 150 180 230 300 450 700 Obtain the schedule for average cost, marginal cost, marginal revenue and total profit when market price for the product is S5 & S8. How much should the firm produce? (c) Case Study : Demand and supply equation for a construetion company in the production of houses. Demand : P 240-6Q4 Supply : P = 120 + 4Qs Calculate consumer surplus and producer surplus at the market equilibrium. Now a new per unit tax of 20 is introduced. Calculate the tax receipts and the new CS, the new PS as well as the deadweight loss. Sketch the two marketsExplanation / Answer
when price is $5
at price $8
The firm should not sell at $5 as it incurs loss at all quantities and should sell 50 quantities at price of $8 as the profit is maximum.
Quantity Price Revenue TC Average cost(TC/Q) Marginal revenue Profit(Revenue-TC) 0 5 0 50 - - -50 10 5 50 85 8.5 5 -35 20 5 100 150 7.5 5 -50 30 5 150 180 6 5 -30 40 5 200 230 5.75 5 -30 50 5 250 300 6 5 -50 60 5 300 450 7.5 5 -150 70 5 350 700 10 5 -350