Part II: Study Problem Answer the following questions using the cost curves for the price-taking firm...
Part II: Study Problem Answer the following questions using the cost curves for the price-taking firm shown in the figure below SMC 3.50 3.00 2.50 ATC AVC 2.00 1.50 1.00 0.50 0 1,000 2,000 4.000 3000 Quantity 13. If price is $3 per unit of output, draw the marginal revenue curve. The manager should produce units. 2 14. Since average total cost is S S for this output, total cost is 15. The firm makes a profit of S 16....
UH Answer the following questions using the cost curves for the price-taking firm shown in the figure below. Is SMC Price and costs (dollars) TITTTTT ATC AVC LILLO 800 1.000 1.200 200 400 600 Quantity 1. If the price is $70 per unit of output, draw the marginal revenue curve and answer the following: a. How many units should be produced at this price? Explain why? b. Calculate: ATC, AVC, and AFC. c. Calculate the total cost of production at...
PART V: Study Problem 1. Suppose a monopolist faces the demand and cost curves shown in the figure below SMC 7 ATC AVC 2 MR D Q 100 200 300 400 500 600 700 800 Quantity 12-a. The monopolist maximizes profit (minimizes loss) by producing units of output. 12-b. The monopolist will sell its output at a price of S per unit. 12-c. The monopolist earns a profit' (loss) of S 12-d. What happens if monopolist charges a price of...
Please provide your answers and explanations. (No handwriting pls because it is so difficult to read..) Thank you in advance. Assignment 6-Q1 SMC ATC Answer the following questions using the cost curves for a firm under perfect competition shown in the figure. 1. How do you draw a marginal revenue curve when the price of good is given at $3.0? 2. How many units should the firm produce? At the production level in 1 above, how much is average total...
Answer questions using the table TABLE Fixed Variable Total Marginal Output Cost Cost Cost AVC ATC Cost 1 $400 2 $700 3 $918 4 $1200 5 $1650 6 $2352 Given: Fixed cost =$1000; price=$550. Fill in table On a piece of graph paper, draw a graph of the demand, marginal revenue, ATC, AVC, and MC curves. The demand curve would be perfectly elastic and it would be the same as the Marginal Revenue Curve and equal to the price. How much is the best level of output?...
Exhibit 8-9 A firm's cost and marginal revenue curves In Exhibit 8-9, product price in this market is fixed at $14. This firm is currently operating where MR = MC. What do you advise this firm to do? Group of answer choices A. This firm should shut down. B. This firm could increase profits by increasing output. C. This firm could increase profits by decreasing output. D. This firm should continue to operate at its current output. E. This firm...
The graph below shows the marginal, average variable, and average total cost curves for a pizza seller. Refer to the graph to answer the following questions. Instructions: Indicate the profit-maximizing level of output. Enter your response as a whole number. Cost Curves 3.50 3.25 3.00 2.75 Select Select Select 2.50 (S/slice) 2.00 W 1.75 1.50 1.25 1.00 0.75 0.50 0.25 100 200 300 400 500 600 700 800 900 Q -> Quantity (slices/day) a. What is the amount of the...
Exhibit 8-17 Marginal revenue and cost per unit curves As shown in Exhibit 8-17, the firm will produce in the short run if the price is: Group of answer choices A. more than $10 per unit. B. more than $15 per unit. C. more than $20 per unit. D. more than $30 per unit. E. more than $40 per unit. ATC 1 AVC Price and costs per unit (dollars) 0 20 100 40 60 80 Quantity of output (units per...
Complete the following table to determine whether Van is correct. Price (Dollars per can) 2.50 3.00 Quantity Demanded (Cans) Total Revenue Total Cost Profit (Dollars) (Dollars) (Dollars) Given the earlier information, Van ▼ correct in his assertion that BYOB should charge $3.00 per can Imagine that a technological innovation decreases BYOB's costs so that it now faces the marginal cost (MC) and average total cost (ATC) given on the following graph. Specifically, the technological innovation causes a decrease in average...
Exhibit 8-11 A firm's cost and marginal revenue curves In Exhibit 8-11, when the price is $5, the firm: Group of answer choices A. is making an economic profit of $21. B. should produce output equal to 10. C. is breaking even. D. should shut down. E. is having an economic loss but should continue as P>AVC. МC P MR = 8 8 АТC 7 6 Cost revenues 5 P MR 5 (dollars) 4 AVC 3 P MR 2 2...