ECON 101 Glendale Community College Profit Maximizing Level of Output Exercises

I’m working on a economics multi-part question and need an explanation to help me study.

Please answer both questions separately:

1.

1. Complete a table for Q, FC, VC, TC, MC, MR, Price, TR and Profit using reasonable numbers for a perfectly competitive firm. Forprice, use a number equal to the number of letters in your first and last name (maximum 20). For Q use 0, 1, 2, 3, 4, 5, 6, 7, 8 For MC use $2, 3, 5, 8, 11 15 20, 25.

   Then make up numbers for FC, VC, TC, MR but make certain that they correspond to the numbers you already used for Price and MC.

   Then find and show the profit maximizing level of output showing that it is where MR = MC. (okay if your quantity is in between two numbers).

   You may need to play around with the numbers to make this work out.

2. What was the one most important concept you learned in the readings on costs of production and competitive markets? In a one page essay, summarize this concept, explain how it changed your prior understanding, and show that this concept is important by applying it to a real life situation. Please make certain that this essay is based on your own understanding, not the understanding of someone else you found on the internet.
3. Based on your own experience, describe a business that is quite competitive. What good or service is produced

   Which of the criteria for a perfectly competitive firm are met by this business—and which are not? (Identical products; price taker; low economic profits)

For this business give examples (description of the cost; no dollar amount needed) of the following and explain why they are examples of this type of cost

Explicit fixed cost

Explicit variable cost

Implicit fixed cost

Implicit variable cost

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2.

Economists identify competitive markets as having these characteristics:

• Identical products
• price taker
• low economic profits

In preparation for the next module in which we will study the majority of markets that do not have these characteristics, based on your experience as a consumer what is a market for one good or service for which these characteristics do not hold?

In your post, describe the good or service (not a brand name or company but the good or service itself) then explain why one or more of these characteristics is not true.