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Question 2. Production and Costs. For some reason, your professor has left his job at Akerlof's and is now running a shwarma shop called, oh, let's say, Daron's. Their production schedule is listed below: Quantity Price 0 20 1 18 2 16 3 14 4 12 5 10 6 8 7 6 8 4 9 Total Revenue Marginal Revenue Total Cost Marginal Cost Profit XXXXXX 5 XXXXXXXX 10 10 10 10 10 10 10 10 10 10 10 (a) (b) (c) (d) 2 0 Provide a value for each empty cell in the chart. One point is granted for filling in each column mostly correctly, with the fifth point reserved for those students who make no errors at all on this question. Your professor has forgotten economics because he is so focused on shwarma. Assume your professor is a monopolist. Please explain to the professor what quantity he should produce and what price he will charge. Is this a long-run or short-run cost schedule? Explain fully how you know. Suppose that your professor was inexplicably at the vanguard of fashion, and suddenly shwarma stores are opening all over the place. The market price of shwarma drops to $8. Give your professor advice.

Question 2. Production and Costs. For some reason, your professor has left his job at Akerlof's and is now running a shwarma shop called, oh, let's say, Daron's. Their production schedule is listed below: Quantity Price 0 20 1 18 2 16 3 14 4 12 5 10 6 8 7 6 8 4 9 Total Revenue Marginal Revenue Total Cost Marginal Cost Profit XXXXXX 5 XXXXXXXX 10 10 10 10 10 10 10 10 10 10 10 (a) (b) (c) (d) 2 0 Provide a value for each empty cell in the chart. One point is granted for filling in each column mostly correctly, with the fifth point reserved for those students who make no errors at all on this question. Your professor has forgotten economics because he is so focused on shwarma. Assume your professor is a monopolist. Please explain to the professor what quantity he should produce and what price he will charge. Is this a long-run or short-run cost schedule? Explain fully how you know. Suppose that your professor was inexplicably at the vanguard of fashion, and suddenly shwarma stores are opening all over the place. The market price of shwarma drops to $8. Give your professor advice.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question 2. Production and Costs. For some reason, your professor has left his job at Akerlof's and is now running a shwarma shop called, oh, let's say, Daron's. Their production schedule is listed below: Quantity Price 0 20 1 18 2 16 3 14 4 12 5 10 6 8 7 6 8 4 9 Total Revenue Marginal Revenue Total Cost Marginal Cost Profit XXXXXX 5 XXXXXXXX 10 10 10 10 10 10 10 10 10 10 10 (a) (b) (c) (d) 2 0 Provide a value for each empty cell in the chart. One point is granted for filling in each column mostly correctly, with the fifth point reserved for those students who make no errors at all on this question. Your professor has forgotten economics because he is so focused on shwarma. Assume your professor is a monopolist. Please explain to the professor what quantity he should produce and what price he will charge. Is this a long-run or short-run cost schedule? Explain fully how you know. Suppose that your professor was inexplicably at the vanguard of fashion, and suddenly shwarma stores are opening all over the place. The market price of shwarma drops to $8. Give your professor advice.
Transcribed Image Text:Question 2. Production and Costs. For some reason, your professor has left his job at Akerlof's and is now running a shwarma shop called, oh, let's say, Daron's. Their production schedule is listed below: Quantity Price 0 20 1 18 2 16 3 14 4 12 5 10 6 8 7 6 8 4 9 Total Revenue Marginal Revenue Total Cost Marginal Cost Profit XXXXXX 5 XXXXXXXX 10 10 10 10 10 10 10 10 10 10 10 (a) (b) (c) (d) 2 0 Provide a value for each empty cell in the chart. One point is granted for filling in each column mostly correctly, with the fifth point reserved for those students who make no errors at all on this question. Your professor has forgotten economics because he is so focused on shwarma. Assume your professor is a monopolist. Please explain to the professor what quantity he should produce and what price he will charge. Is this a long-run or short-run cost schedule? Explain fully how you know. Suppose that your professor was inexplicably at the vanguard of fashion, and suddenly shwarma stores are opening all over the place. The market price of shwarma drops to $8. Give your professor advice.
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