2 Bob's lawn-mowing service is a profit-maximizing, competitive firm. Bob mows lawns for $27 each. His...
November 5 1. Bob's Lawn-mowing service is a profit-maximizing competitive firm. Bob mows lawns for $30 each He mows 10 lawns a day (which, again, maximizes his profits). At this quantity, his total cost each day is $700, of which $600 is a fixed cost. (a) Calculate his profits. Show your work! (b) Should Bob shut down in the short run (say, tomorrow)?? Should Bob leavelexit the industry in the long run?? EXPLAIN
3) Christine’s photography business is a profit-maximizing competitive firm. Christine takes photos for $150 a session. Her variable cost for each session is $50 and she has a fixed cost of $2500 for equipment. Christine had 22 sessions last year. Calculate Christine’s economic profit. What can you say about Christine's short-run decision regarding shutdown and her long-run decision regarding whether to remain in the market or to exit the market?
4. Problems and Applications Q4 An economy consists of three workers: Bob, Eric, and Kenji. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Bob can either mow 2 lawns or wash 1 car; Eric can either mow 1 lawn or wash 1 car; and Kenji can either mow 1 lawn or wash 2 cars. For each of the scenarios listed in the following table, determine how many lawns will be mowed...
6 5 pts each THE FOLLOWING TABLE FOR IAN'S MOWING SERVICE IS INCOMPLETE. FILL IN THE MISSING INFORMATION AND ANSWER THE NEXT 2 QUESTIONS #lawns mowed/day $9.00 total revenue profit $3.60 total profit revenue loosewow total costs 7.00 9.00 10.50 12.50 15.00 18.00 22.00 28.00 36.00 46.00 9 1 CALCULATE TOTAL REVENUE AND PROFIT WHEN THE MARKET PRICE IS $9.00. 2 CALCULATE TOTAL REVENUE AND PROFIT WHEN THE MARKET PRICE IS $3.60. USING THE TOTAL COST INFORMATION, CALCULATE MARGINAL COST...
Which of the following is true of a profit-maximizing competitive firm in the short run? The firm produces at the point where price is equal to marginal cost. The firm produces at the point where average cost is at its minimum point. The demand curve faced by each firm in the industry is downward sloping. The firm always makes a zero economic profit. The firm suffers a deadweight loss.
8. Refer to the graph above depicting a perfectly competitive firm. When maximizing profit, the total profit earned by the firm represented is: A. $220. B. $275. C. $330 D. $605, 26. Refer to the graph above of a monopolistically competitive firm. If the firm maximizes profit, it will earn: A. zero economic profit this year. B. $320,000 economic profit this year. C. 584,000 economic profit this year. D. $56,000 economic profit this year. ATC AVC - 01 02 03...
Figure 14-2 The figure below depicts the cost structure of a profit-maximizing firm in a competitive market. Costs MC ATC AVC Quantity Refer to Figure 14-2. If the firm is in a short-run position where PAVC, it is most likely to be on what segment of its supply curve? O DE CD О вс AB
Question Completion Status: QUESTION 4 In a Cournot duopoly market, the two firms agree to produce half of the monopoly output level for that market and split the resulting profit. Since the monopoly profit is the highest profit that can be obtained, the two firms will always stick to that agreement even if it's not legally (or in any other way) binding. a) TRUE b) FALSE OC) UNCERTAIN 8 poi QUESTION 5 ELE LE Dolores's lawn cutting service is a...
Homework (Ch 13) Bob's Performance Pizza is a small restaurant in New York City that sells gluten free pizzas. Bob's very tiny kitchen has barely enough room for the four ovens in which his workers bake the pizzas. Bob signed a lease obligating him to pay the rent for the four ovens for the next year. Because of this, and because Bob's kitchen cannot fit more than four ovens, Bob cannot change the number of ovens he uses in his...
cardboard boxes are produced in a perfectly
competitive market. each identical firm has a short run total cost
curve of TC= 3Q^3 - 12Q^2 +16Q + 100, where Q is measured in
thousands of boxes per week. calculate the output for the price
below which a firm in the market will not produce any output in the
short run. ( i.e., the output for the shut down price)
a 2^1/2
b. 2
c. 1/2
d. 1/square root of 2
2)...