 # Consider the following hourly demand and cost schedule for a firm f...

## Question

Consider the following hourly demand and cost schedule for a firm facing a fixed price> (Tπ, is Total Profit).

Complete the columns for TR, MR, TFC, TVC, TC, ATC, AVC, and MC as well as those for (TC), TVC, & TFC.

a. Draw the curves for Demand (Price Vs. Quantity), MR (Marginal Revenue), ATC, AVC, and MC, all in one diagram. Also draw the Total Revenue (TR), Total Cost (TC), TVC, and TFC in a second diagram right below the first one (One we will call the Diagram Above, and the other, the diagram below).
b. Determine, in order to maximize profit. How many units this firm should produce and explain why.
c. Demonstrate the geometric areas (rectangles) of Total Revenue, Total Cost and Total Profit at the profit-maximizing level and calculate the values of each in the diagram above (and not the one below).
d. Show the Total Revenue, Total Cost and Total Profit at the profit-maximizing level in the diagram below.

## Solution Preview

These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.

By purchasing this solution you'll be able to access the following files:
Solution.docx.

\$15.00
for this solution

or FREE if you
register a new account!

PayPal, G Pay, ApplePay, Amazon Pay, and all major credit cards accepted.

### Find A Tutor

View available Economics Tutors

Get College Homework Help.

Are you sure you don't want to upload any files?

Fast tutor response requires as much info as possible.