Refer To The Profit Maximization Table Below A Fisher Who Sells His Mackerel Catch In A Perfectly Competitive Market Fa 1 (74.61 KiB) Viewed 10 times
Refer to the profit maximization table below. A fisher who sells his mackerel catch in a perfectly competitive market faces revenues and costs as shown in the table. a. Fill in the table, writing out dollars and cents e.g. $1.00 or $0.10. Remember to include a minus (-) sign for any negative entries and to round 0.005 up to 0.01. (1) Price ($ per kilogram) 0.60 0.60 0.60 0.60 0.60 0.60 (2) Quantity (kilograms per day) 0 20 38 58 66 76 (3) Total Revenue ($) (4) (5) (6) Fixed Cost Variable Cost Total Cost ($) ($) ($) 25 0 25 25 25 25 25 10 14 23 29 46 (7) (8) Average Fixed Average Variable (9) Average Cost Cost Cost ($ per kilogram) ($ per kilogram) ($ per kilogram) b. Draw the marginal revenue, marginal cost, average variable, and average cost curves in the graph below. Using the tools provided plot only the 2 endpoints for the marginal revenue curve at the quantities of 0 and 76. Plot 5 points each for the marginal cost, average variable and average cost curves for a total of 17 points. To manually enter plotting coordinates click on a line segment between 2 plotted points then click the widget icon. Enter coordinates for the curve in the properties box that appears. Remember that marginal values such as marginal cost are plotted halfway between the two relevant quantity levels on the horizontal axis. (10) Marginal Cost ($ per kilogram)
c. This fisher's profit-maximizing quantity (from the quantities shown in the table above) is fisher is making a (Click to select) of $ d. The fisher's breakeven point is at a quantity (from the quantities shown in the table above) of The fisher's shutdown point is at a quantity (from the quantities shown in the table above) of e. The fisher's supply curve is O the average cost curve above the shutdown point. O the average cost curve above the breakeven point. O the marginal cost curve below the breakeven point. O the marginal cost curve above the shutdown point. kilograms. At this quantity, the O continue to make a positive economic profit. O leave the industry. O break even. O continue to make an economic loss. kilograms and a price of $ kilograms and a price of $ f. If, in the long run, price remains at $0.60 and the total costs shown in the table still apply, the fisher will
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!