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1. The graph below provides revenue and cost information for a perfectly competitive firm producing paper clips.
Output Total Revenue Total VariableCost Total Fixed Cost

1 $1 000 $1 500 $500

2 $2 000 $2 000 $500

3 $3 000 $2 600 $500

4 $4 000 $3 900 $500

5 $5 000 $5 000 $500





1. How much are total fixed costs?

2. About how much are total variable costs if 5,000 paper clips are produced?

3. What is the price of a paper clip?

4. What is the average revenue from producing paper clips?

5. What is the marginal revenue of producing paper clips?

6. Over what output range will this firm earn economic profits? 7. Over what output range will this firm incur economic losses? 8. What is the slope of the total revenue curve?

9. What is the slope of the total cost curve at the profit-maximizing number of paper clips per hour?

10. At about how many paper clips per hour do economic profits seem to be at a maximum?

Ответ:

1. Total fixed costs are $500.

2. Total variable costs for producing 5,000 paper clips are $5,000.

3. The price of a paper clip is not explicitly given in the provided data.

4. Average revenue from producing paper clips is the total revenue divided by the quantity of output. However, the data does not provide the quantity produced at each level of output. Therefore, average revenue cannot be determined.

5. Marginal revenue is the change in total revenue resulting from a one-unit change in output. It is not directly provided in the given data.

6. Economic profits occur where total revenue exceeds total cost. From the data, it seems the firm earns economic profits over the entire output range.

7. Economic losses occur where total cost exceeds total revenue. Based on the provided data, it appears the firm incurs economic losses over the entire output range.

8. The slope of the total revenue curve is not given in the provided data.

9. The slope of the total cost curve at the profit-maximizing number of paper clips per hour is not calculable with the provided data.

10. The data does not include information to identify the specific quantity at which economic profits are maximized.