Please indicate the correct answer and why. Thank you!
Homework Answers
a). In this graph the upward rising portion of the MC curve is the supply curve of the firm and if the market price is $21 so it will produce 2000 toys a week.
Draw a line at the price of $21 and we can clearly see that the quantity is 2000 when the line touches the MC curve.
b). The market price is well above the average total cost curve so the firm makes positive economic profits in the short run.
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Please indicate the correct answer and why. Thank you!
The graph shows the short-run cost curves...
Price and cost (dollars per toy) The graph shows the short-run cost curves of a toy...
Price and cost (dollars per toy) The graph shows the short-run cost curves of a toy producer. Assume the toy producer is in a perfectly competitive market. If the market price of a toy is $11, then O A. The firm will break even. OB. The firm will lose an amount greater than its fixed costs. O C . The firm will lose an amount equal to its fixed costs. O D. The firm will lose an amount less than...
Suppose the competitive market for cat toys is in short-run equilibrium. The following graph on the...
Suppose the competitive market for cat toys is in short-run equilibrium. The following graph on the left shows the demand and short-run supply for cat toys. Assume every firm in this industry is identical. The graph on the right shows the marginal cost (MC) and average cost (AC) curves for each firm in the long run. Short-Run Market Individual Firm PRICE (Dollars per cat toy) COST (Dollars per cat toy) Supply MC 0 Demand + + + + 0 10...
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5...
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5 5 8 10 13 17 g) (3 points) Calculate the economic profit of this firm when the market price is $15
please complete the LR line 3. Moving from short-run to long-run equilibrium Suppose the competitive market...
please complete the LR line
3. Moving from short-run to long-run equilibrium Suppose the competitive market for cat toys is in short-run equilibrium. The following graph on the left shows the demand and short-run supply for cat toys. Assume every firm in this industry is identical. The graph on the right shows the marginal cost (MC) and average cost (AC) curves for each firm in the long run. Short-Run Market Individual Firm Supply PRICE (Dollars per cat toy) AAAAAAAA+ COST...
The following graph shows the demand and cost curves for a perfectly competitive firm. The profit-maximizing...
The following graph shows the demand and cost curves for a perfectly competitive firm. The profit-maximizing firm will: MC ATC // AVC Multiple Choice shut down. ο produce with short-run losses. O produce with long-run economic profits. ο produce with short-run economic profits.
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5...
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5 5 8 10 13 17 d) (3 points) At a market price of $11, what is the firm's short run profit max- imizing output? e) (3 points) At a market price of $11, is the firm earning positive, negative, or zero economic profit? f) (3 points) At a market price of $11, is the market in a long run equilibrium? Why of Why not?
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5...
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5 1 1 1 ! сл 8 10 13 17 Q Use figure 2, which depicts the cost curves of a perfectly competitive firm to answer the following a)(3 points) When the market prices is $8, what is the firm's short run profit maximizing output? b) (3 points)At a market price of $8, is the firm earning positive, negative, or zero economic profit? c) (3...
5. Moving from short-run to long-run equilibrium Suppose the competitive market for cat toys is in...
5. Moving from short-run to long-run equilibrium Suppose the competitive market for cat toys is in short-run equilibrium. The following graph on the left shows the demand and short-run supply for cat toys. Assume every firm in this industry is identical. The graph on the right shows the marginal cost (MC) and average cost (AC) curves for each firm in the long run. ? ? Short-Run Market Individual Firm 10 10 8 8 AC MC Supply 2 1 1 Demand...
Consider the following short run cost curves for Barney's Barley, a producer operating in the perfectly...
Consider the following short run cost curves for Barney's Barley, a producer operating in the perfectly competitive barley market. 6. MC $7 ATC 56 86 AVC 86 83 82 50 0 10 20 30 40 60 90 Bushells of Barley a. What is Barney's total cost at this price? b. What is the total profit lor loss) for Barney at a price of S8!? What is the absolute lowest price bushel of barley could reach before Barney would shut down...
Suppose the U.S. bicycle market is perfectly competitive. The graph below shows the short run cost...
Suppose the U.S. bicycle market is perfectly competitive. The graph below shows the short run cost curves of Ted's bicycle store. Suppose the market price is $29. Is Ted making an economic profit in the short run? Are the profits sustainable in the long run assuming this is a constant cost industry? Briefly explain. MC ATC AVC 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13...
Price and cost (dollars per toy) The graph shows the short-run cost curves of a toy producer. Assume the toy producer is in a perfectly competitive market. If the market price of a toy is $11, then O A. The firm will break even. OB. The firm will lose an amount greater than its fixed costs. O C . The firm will lose an amount equal to its fixed costs. O D. The firm will lose an amount less than...
Suppose the competitive market for cat toys is in short-run equilibrium. The following graph on the left shows the demand and short-run supply for cat toys. Assume every firm in this industry is identical. The graph on the right shows the marginal cost (MC) and average cost (AC) curves for each firm in the long run. Short-Run Market Individual Firm PRICE (Dollars per cat toy) COST (Dollars per cat toy) Supply MC 0 Demand + + + + 0 10...
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5 5 8 10 13 17 g) (3 points) Calculate the economic profit of this firm when the market price is $15
please complete the LR line
3. Moving from short-run to long-run equilibrium Suppose the competitive market for cat toys is in short-run equilibrium. The following graph on the left shows the demand and short-run supply for cat toys. Assume every firm in this industry is identical. The graph on the right shows the marginal cost (MC) and average cost (AC) curves for each firm in the long run. Short-Run Market Individual Firm Supply PRICE (Dollars per cat toy) AAAAAAAA+ COST...
The following graph shows the demand and cost curves for a perfectly competitive firm. The profit-maximizing firm will: MC ATC // AVC Multiple Choice shut down. ο produce with short-run losses. O produce with long-run economic profits. ο produce with short-run economic profits.
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5 5 8 10 13 17 d) (3 points) At a market price of $11, what is the firm's short run profit max- imizing output? e) (3 points) At a market price of $11, is the firm earning positive, negative, or zero economic profit? f) (3 points) At a market price of $11, is the market in a long run equilibrium? Why of Why not?
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5 1 1 1 ! сл 8 10 13 17 Q Use figure 2, which depicts the cost curves of a perfectly competitive firm to answer the following a)(3 points) When the market prices is $8, what is the firm's short run profit maximizing output? b) (3 points)At a market price of $8, is the firm earning positive, negative, or zero economic profit? c) (3...
5. Moving from short-run to long-run equilibrium Suppose the competitive market for cat toys is in short-run equilibrium. The following graph on the left shows the demand and short-run supply for cat toys. Assume every firm in this industry is identical. The graph on the right shows the marginal cost (MC) and average cost (AC) curves for each firm in the long run. ? ? Short-Run Market Individual Firm 10 10 8 8 AC MC Supply 2 1 1 Demand...
Consider the following short run cost curves for Barney's Barley, a producer operating in the perfectly competitive barley market. 6. MC $7 ATC 56 86 AVC 86 83 82 50 0 10 20 30 40 60 90 Bushells of Barley a. What is Barney's total cost at this price? b. What is the total profit lor loss) for Barney at a price of S8!? What is the absolute lowest price bushel of barley could reach before Barney would shut down...
Suppose the U.S. bicycle market is perfectly competitive. The graph below shows the short run cost curves of Ted's bicycle store. Suppose the market price is $29. Is Ted making an economic profit in the short run? Are the profits sustainable in the long run assuming this is a constant cost industry? Briefly explain. MC ATC AVC 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13...
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