microeconomics problems, homework help

User Generated

nnyv44

Economics

Description

microeconomics problems , please solve it for me thank you. If you have any additional information just let me know. It shouldn't take too long. You can solve those on a piece of paper and then just provide me with the solution can send it ether to me as an email or take picture and attach it here.

Unformatted Attachment Preview

QUIZ 8 (100 Points) 100 points per problem Class Time: due on 11/17/16 Name: ID: (USE A PEN) SHOW ALL FORMULAS AND CALCULATIONS FOR FULL POINTS 1. Credit Check, Inc., offers credit checking services to credit card companies and retailers. The following relation exists between the number of credit checks performed and total costs in this viciously competitive market: Total Output 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Total Cost $ 150 600 1,060 1,540 2,040 2,565 3,115 3,750 A. Construct a table showing the marginal cost of production. B. What is the minimum price necessary for the firm to supply one thousand credit checks? C. How many credit checks would the firm perform at industry prices of $510 and $550 per thousand? 2. The Los Angeles retail market for unleaded gasoline is fiercely price competitive. Consider the situation faced by a typical gasoline retailer when the local market price for unleaded gasoline is $2.50 per gallon and total cost (TC) and marginal cost (MC) relations are: TC = $156,250 + $2.25Q + $0.0000001Q2 MC = TC/Q = $2.25 + $0.0000002Q and Q is gallons of gasoline. Total costs include a normal profit. A. Using the firm's marginal cost curve, calculate the profit-maximizing long-run supply from a typical retailer B. 3. Calculate the average total cost curve for a typical gasoline retailer, and verify that average total costs are less than price at the optimal activity level. The Athletic Medicine Center in Madison, Wisconsin, enjoys pricing power in the practice of medicine. Market demand and marginal revenue relations for a standard medical procedure to repair damaged knee cartilage are: P = $5,000 - $0.05Q MR = $5,000 - $0.1Q Marginal costs are constant at $4,000 per unit. A. Calculate the profit-maximizing price/output combination and economic profits if the Athletic Medicine Center enjoys an effective monopoly. B. Calculate the price/output combination and total economic profits that would result if new entrants create a perfectly competitive market. (Note that for perfectly competitive market in equilibrium P =MR = MC).
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Hi,I wrote the solution in docs file.

QUIZ 8 (100 Points) 100 points per problem

Class Time: due on 11/17/16

Name:

ID:
(USE A PEN) SHOW ALL FORMULAS AND CALCULATIONS FOR FULL POINTS

1.

Credit Check, Inc., offers credit checking services to credit card companies and retailers. The
following relation exists between the number of credit checks performed and total costs in this
viciously competitive market:
Total
Output
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
A.

Total
Cost
$ 150
600
1,060
1,540
2,040
2,565
3,115
3,750

Construct a table showing the marginal cost of production.
Marginal Cost is calculated by finding the difference between the current and previous value of total
cost.

Marginal Cost at output 1000 ,600-150 = $450
Output,2000, MC =$1060-600 =$460
Output =3000,MC = $1540 -$1...


Anonymous
Awesome! Perfect study aid.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags