Microeconomics a problem with MR=MC for finding lost
- From: Gary <ghlusko@xxxxxxxxx>
- Date: Wed, 27 Jun 2007 05:22:45 -0700
Q TFC TVC
TC MC
0 $10 0.00
10
1 $10 20.00
38 20
2 $10 38.00
48 18
3 $10 54.00
64 16
4 $10 72.00
82 18
5 $10 92.00
102 20
6 $10 114.00
124 22
7 $10 138.00
148 24
IF the market price is $15, the minimuum loss this perfectly
competitive firm can incur is
A $10
b $15
c $18
D $19
E 22
This test question gave our class some problems. If we use MR=MC to
find minimum loss the quanity is three. But if we use total profit=
quanity(Total Revenue- Total Cost) then its 1, but in realilty it's
zero. So what causes this it's too general?
.
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