Written Assignment 3

Written Assignment 3
Answer all of the sideline questions. form of address your assignment Written Assignment 3, unless your mentor directs otherwise. This assignment c overs text chapters 13 through 17.
1. At its current level of production, a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces and faces an mean(a) total follow of $10. At the market price of $12.50 per unit, the firms borderline cost curve crosses the marginal revenue curve at an output level of m units. What is the firms current profit? What is likely to occur in this market, and why?
A) Profit = (12.50 10) X 1000 = $2 cholecalciferol. As there exists verifying economic profit in this perfectly competitive industriousness in the short run ( as the price exceeds the average total cost), new firms go forth be attracted to enter the industry. As new firms enter the industry, the total market production increases, this allow bring down the market price and thus, result in a fall in profits. This entry of new firms will continue till the economic profits in the bulky run becomes equal to zero, after which there will be no incentive for any new firm to enter.

2. In order to determine whether time is being spent optimally, a commercial look forerman has recorded the following information over the past year: bits spent fishing and quantity of fish caught.



What is the marginal product of fishing for hour spent?
Hours/ mean solar day| Total Quantity of Fish (tons)| Marginal Product|
0| 0| 0|
1| 10| 10|
2| 18| 8|
3| 24| 6|
4| 28| 4|
5| 30| 2|
6| 31| 1|
3. The fisherman has a fixed cost of $cc per day and variable costs of $150 per hour (wages and fuel).
a. Fill in the information missing in the following table.
Hours/ day| Total Fixed Costs| Total variant Costs| Total Costs| Marginal Costs|
0| two hundred| 0| 200| 0|
1| 200| 150| 350| 150|
2| 200| 300| 500| 150|
3| 200| 450| 650| 150|
4| 200| 600| 800|...If you want to get a full essay, order it on our website: Ordercustompaper.com



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