Make Calculations about Economic (Class Homework)
1. The firm should change the price of the firm to $ 12 in order to maximize its profit; the firm must produce 12 units in order to attain profits at this level. This is the equilibrium price since the MR curve intercepts the MC curve.
2. It is evident that in the short run the profits are lower than in the end. The firm must produce approximately 16 units in order for them to maximize profits.
3. The total value of the projects sunk cost is $ 40 for year 1 and $40 for year 2, which is equal 80, the future costs is are estimated to be $60. I would recommend the company to manure this drug s it brings revenue to the company.
3. Firms earning a loss will sometimes shut down in the end the profits in this firm will be $ 675 and if the firm decided to operate in the short-run it will have the same amount of profits which will be $1350.
4. The firms total revenue will be $ 100800, while the firms total cost will be $ 85800 The firms profit will be $ 15000
4. In case the firm maximizes its profits the firms will earn a profit of $1350
5. At the long run equilibrium, the price of the product will be $40 at a quantity of 50 units.