Homework Answers
1) Setting P=MC, the firm will produce 14 units where ATC=3 so Profits = (4-3)*14 = 14
2) The firm will produce 13 units and Profits = (3-3)*13 = 0
3) The firm will produce 12 units and Loss = (2-3)*12 = -12
4) The firm will produce 0 units as the price is less than minimum AVC so the loss of 14
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Price N ....
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions:...
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions: TR = 10Q TC = 2 + 2Q + Q2 MC = 2 + 2Q At the level of output maximizing profit , the above firm's level of economic profit is A) $0 B) $4 C) $6 D) $8 *Additional information after I did the math: The price this firm charges for its product is $10, the level of output maximizing profit is 4...
please i want it typed please Styles 14. The Vague Fabric Company sells cotton fabric in...
please i want it typed please
Styles 14. The Vague Fabric Company sells cotton fabric in a perfectly competitive market at a price of $4 per yard. Its marginal cost, average variable cost, and average total cost curves can be seen below. price MC ATC d=MR AVC Find the profit-maximizing level of output and mark it q* Shade in the area of profit earned by the firm. Is it positive or negative? How do you know? 15. The Binkle Binder...
1. Draw two graphs. On the first, show the short-run profit maximizing output of an individual...
1. Draw two graphs. On the first, show the short-run profit maximizing output of an individual firm earning an economic profit, including MR, MC, AVC, and ATC. On the second, show the short-run market equilibrium price and quantity. Explain how the industry supply curve and the market equilibrium price and quantity are determined. 2. What is the relationship between the price on the two graphs? Why does this relationship exist? 3. Explain why a firm in a perfectly competitive industry...
cach ANSWER THE FOLLOWING 2 QUESTIONS BASED ON THE GRAPH FOR A PERFECTLY COMPETITIVE FIRM mC...
cach ANSWER THE FOLLOWING 2 QUESTIONS BASED ON THE GRAPH FOR A PERFECTLY COMPETITIVE FIRM mC ATC AVC H00 3 5 in thousan THE BREAK EVEN PRICE FOR THIS FIRM IS AND THE QUANTITY IF THE MARKET PRICE IS $600 PER THOUSAND BUSHEL, THE FIRM WILL PRODUCE AND EARN AN ECONOMIC PROFIT OF pts each USE THE FOLLOWING GRAPH FOR MUGS-R-US TO ANSWER THE NEXT 6 QUESTIONS ATC 4.5B 4.20 AVC 7D 88 /DD IF THE MARKET PRICE OF MUGS...
Exhibit 7-17 Marginal revenue and cost per unit curves DMC ATC Price and costs per unit...
Exhibit 7-17 Marginal revenue and cost per unit curves DMC ATC Price and costs per unit (dollars) AVC 0 20 100 40 60 80 Quantity of output (units per day) 16. As shown in Exhibit 7-17, the price at which the firm earns zero economic profit in the short-runis a. $10 per unit. b. $15 per unit. c. $40 per unit. d. more than $20 per unit. e. $20 per unit. 17. In long-run equilibrium, the typical perfectly competitive firm...
suppose a competitive firm has the following cost: Q 0 1 2 3 4 5 6...
suppose a competitive firm has the following cost: Q 0 1 2 3 4 5 6 7 8 9 TC ($) 50 54 62 74 90 110 134 162 194 230 (Q: output ; TC: total cost) 1 Assume market price is $12 how much should the firm produce to maximize profit? 2 How much profit will it earn at $12? 3 Assume market price is $28, how much should the firm produce to maximize profit? 4 How much profit...
This is a firm in a perfectly competitive market. The selling price is $5. Fill in...
This is a firm in a perfectly competitive market. The selling price is $5. Fill in the table below and enter the answers to the questions down below: 1-How many units should be produced? 2- What will be the profit per unit? 3- What will be the total profit? 4- If the price were to drop to $4 how many units should be produced? 5- What will be the total profits? 6- If the price falls to $1, how many...
CAN YOU PLEASE EXPLAIN HWO YOU GOT EVERYTHING FOR THE GRAPH AND DISREGUARD WHATS WRITTEN IN PENCI...
CAN YOU PLEASE EXPLAIN HWO YOU GOT EVERYTHING FOR THE GRAPH AND
DISREGUARD WHATS WRITTEN IN PENCIL THANK YOU
24. A perfectly competitive industry is composed of 200 identical firms. Each firm has the following cost schedules: q TC VC FC ATC AVC MC 10 20 IS 6.6 z0 10 20 30 50 80 120 170 4 28.3 a) Complete the preceding Table. b) Assuming that the market price is p 30, what is the quantity produced by each firm...
Sonya and Leah operate a small firm in a perfectly competitive market, the diagram illustrates its...
Sonya and Leah operate a small firm in a perfectly competitive
market, the diagram illustrates its MC, ATC, AVC and MR
curves.
1. What is their current average revenue per unit?
2. What is their profit maximizing level of output and
profit?
3. If the market clearing price drops to $10.00 per unit,
should they continue to produce in the short run if they wish to
maximize their economic profits (or minimize its economic losses)?
Explain.
4. What is their...
1) How much output should Sindbad produce to maximize his profit, if the market price is...
1) How much output should
Sindbad produce to maximize his profit, if the market price is
equal
to $11? (2 marks)
2) How much profit (loss) will he earn? (2 marks)
3) Indicate the profit (loss) area on the graph. (2 marks)
4) Find the fixed cost paid by the firm. (2 marks)
5) Suppose Sindbad decides to shut down. What would his loss be? (2
marks)
The following graph represents the situation of Sindbad's caps, a firm selling caps...
please i want it typed please
Styles 14. The Vague Fabric Company sells cotton fabric in a perfectly competitive market at a price of $4 per yard. Its marginal cost, average variable cost, and average total cost curves can be seen below. price MC ATC d=MR AVC Find the profit-maximizing level of output and mark it q* Shade in the area of profit earned by the firm. Is it positive or negative? How do you know? 15. The Binkle Binder...
cach ANSWER THE FOLLOWING 2 QUESTIONS BASED ON THE GRAPH FOR A PERFECTLY COMPETITIVE FIRM mC ATC AVC H00 3 5 in thousan THE BREAK EVEN PRICE FOR THIS FIRM IS AND THE QUANTITY IF THE MARKET PRICE IS $600 PER THOUSAND BUSHEL, THE FIRM WILL PRODUCE AND EARN AN ECONOMIC PROFIT OF pts each USE THE FOLLOWING GRAPH FOR MUGS-R-US TO ANSWER THE NEXT 6 QUESTIONS ATC 4.5B 4.20 AVC 7D 88 /DD IF THE MARKET PRICE OF MUGS...
Exhibit 7-17 Marginal revenue and cost per unit curves DMC ATC Price and costs per unit (dollars) AVC 0 20 100 40 60 80 Quantity of output (units per day) 16. As shown in Exhibit 7-17, the price at which the firm earns zero economic profit in the short-runis a. $10 per unit. b. $15 per unit. c. $40 per unit. d. more than $20 per unit. e. $20 per unit. 17. In long-run equilibrium, the typical perfectly competitive firm...
CAN YOU PLEASE EXPLAIN HWO YOU GOT EVERYTHING FOR THE GRAPH AND
DISREGUARD WHATS WRITTEN IN PENCIL THANK YOU
24. A perfectly competitive industry is composed of 200 identical firms. Each firm has the following cost schedules: q TC VC FC ATC AVC MC 10 20 IS 6.6 z0 10 20 30 50 80 120 170 4 28.3 a) Complete the preceding Table. b) Assuming that the market price is p 30, what is the quantity produced by each firm...
Sonya and Leah operate a small firm in a perfectly competitive
market, the diagram illustrates its MC, ATC, AVC and MR
curves.
1. What is their current average revenue per unit?
2. What is their profit maximizing level of output and
profit?
3. If the market clearing price drops to $10.00 per unit,
should they continue to produce in the short run if they wish to
maximize their economic profits (or minimize its economic losses)?
Explain.
4. What is their...
1) How much output should
Sindbad produce to maximize his profit, if the market price is
equal
to $11? (2 marks)
2) How much profit (loss) will he earn? (2 marks)
3) Indicate the profit (loss) area on the graph. (2 marks)
4) Find the fixed cost paid by the firm. (2 marks)
5) Suppose Sindbad decides to shut down. What would his loss be? (2
marks)
The following graph represents the situation of Sindbad's caps, a firm selling caps...
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