“That segment of a competitive firm’s marginal-cost curve that lies above its average-variable-cost curve constitutes the...
“That segment of a competitive firm’s marginal-cost curve that lies above its average-variable-cost curve constitutes the short-run supply curve for the firm.” Explain.
Homework Answers
The firm will only produce when the price is equal to or above its minimum AVC
The MC curve intersects the AVC at its minimum and the firm sets P=MC for profit maximization so it will supply when the price is greater than minimum AVC and the supply curve becomes the portion of the MC curve which lies above the minimum AVC.
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“That segment of a competitive firm’s marginal-cost curve that
lies above its average-variable-cost curve constitutes the...
Assume the following cost data are for a purely competitive producer: Average fixed Total Product Average...
Assume the following cost data are for a purely competitive producer: Average fixed Total Product Average variable cost Average total cost Marginal cost cost $45 40 can AWN $60.00 30.00 20.00 15.00 12.00 10.00 8.57 $45.00 42.50 40.00 37.50 37.00 37.50 38.57 40.63 43.33 46.50 $105.00 72.50 60.00 52.50 49.00 47.50 47.14 48.13 50.00 52.50 7.50 6.67 6.00 (1) (3) (2) Quantity supplied, single firm (4) Quantity supplied, 1500 firms Price Profit (+) or loss (1) $26 32 e. Explain:...
ATC AVC The figure above represents a firm's marginal cost, average variable cost, and average total...
ATC AVC The figure above represents a firm's marginal cost, average variable cost, and average total cost curves. The firm operates in a perfectly competitive market. Copy this figure into your assignment and indicate the firm's short-run market supply curve.
The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost (ATC) curves for a firm in a competitive market. These curves imply a short-run supply curve that has two distinct parts. One part, not shown, lies along the
The graph below shows the marginal cost (MC), average variable cost (AVC), and average total cost (ATC) curves for a firm in a competitive market. These curves imply a short-run supply curve that has two distinct parts. One part, not shown, lies along the vertical axis (quantity = 0); this represents a condition of production shutdown. Where is the other part? Use the straight-line tool to draw it.
Gusuadoon 4 For a perfectly competitive firm's its marginal cost curve above the minimum of the...
Gusuadoon 4 For a perfectly competitive firm's its marginal cost curve above the minimum of the average vanable cost Cure is the same as. a its Aug var. cost curve b. its Averge Total cost curre Co its marginal Revenue curve d. its short-nun supply cunu 5. Assume a profit maximizing firm's short run cost'is TC = 1200 + 702, If its demand curve is P=60 -a, what is the profit maximizing quantity (4 d. 15 b 14 a. 1200
In the graph above, MC is the firm's marginal cost curve, ATC is the firm's average...
In the graph above, MC is the firm's marginal cost curve, ATC is
the firm's average total cost curve, and AVC is the firm's average
variable cost curve. If the firm faces a price between P1 and
P2:
the firm will stay open in both the short run and the long
run.
the firm will stay open in the short run but close in the long
run.
the firm will close in both the short and long run.
- -...
In the graph above, MC is the firm's marginal cost curve, ATC is the firm's average...
In the graph above, MC is the firm's marginal cost curve, ATC is
the firm's average total cost curve, and AVC is the firm's average
variable cost curve. If the firm faces a price greater than P2,
then
the firm will stay open in both the short and the long run.
the firm will stay open in the short run, but close in the long
run.
the firm will close in both the short and the long run.
Ате 12...
Question 2 [20 marks] (a) Explain why the marginal cost curve above the average variables cost...
Question 2 [20 marks] (a) Explain why the marginal cost curve above the average variables cost curve is referred to as the firm’s short run supply curve? ( use both verbal and diagram analysis) (6) (b) With a help of a diagram explain the following concepts: economies of scale, constant return to scale and diseconomies of scale. (6) (c) Use the indifference curve approach to derive the Marshallian demand curve. (8)
P M C ATC Av In the graph above, MC is the firm's marginal cost curve, ATC is the firm's average total cost curve,...
P M C ATC Av In the graph above, MC is the firm's marginal cost curve, ATC is the firm's average total cost curve, and AVC is the firm's average variable cost curve. If the firm faces a price between P1 and P2: the firm will stay open in both the short run and the long run. the firm will stay open in the short run but close in the long run. the firm will close in both the short...
Price, cost ATC AVC Quantity Based on the graph the supply curve for the perfectly competitive...
Price, cost ATC AVC Quantity Based on the graph the supply curve for the perfectly competitive firm depicted is most accurately represented by the segment: O O O O Price, cost Quantity Based on the graph above a perfectly competitive firm would never continue operations in short run if the price dropped to which segment of the marginal cost curve? O CE O AD O AC Осо
1. A. Graph the short-run supply curve for a perfectly competitive firm and explain where this...
1. A. Graph the short-run supply curve for a perfectly competitive firm and explain where this short-run supply curve lies. Indicate the following curves on your graph: marginal cost curve, marginal revenue curve, average-total-cost curve, average-variable-cost curve, short-run supply curve. B Complete the chart for Elmer's Wheat farm. Quantity of Output Total Cost Average Total Cost Marginal Cost Price Total Revenue Marginal Revenue Profit/ Loss 0 $75 $ --- $ --- $ --- $0 $ --- - $75 1 220...
Assume the following cost data are for a purely competitive producer: Average fixed Total Product Average variable cost Average total cost Marginal cost cost $45 40 can AWN $60.00 30.00 20.00 15.00 12.00 10.00 8.57 $45.00 42.50 40.00 37.50 37.00 37.50 38.57 40.63 43.33 46.50 $105.00 72.50 60.00 52.50 49.00 47.50 47.14 48.13 50.00 52.50 7.50 6.67 6.00 (1) (3) (2) Quantity supplied, single firm (4) Quantity supplied, 1500 firms Price Profit (+) or loss (1) $26 32 e. Explain:...
ATC AVC The figure above represents a firm's marginal cost, average variable cost, and average total cost curves. The firm operates in a perfectly competitive market. Copy this figure into your assignment and indicate the firm's short-run market supply curve.
Gusuadoon 4 For a perfectly competitive firm's its marginal cost curve above the minimum of the average vanable cost Cure is the same as. a its Aug var. cost curve b. its Averge Total cost curre Co its marginal Revenue curve d. its short-nun supply cunu 5. Assume a profit maximizing firm's short run cost'is TC = 1200 + 702, If its demand curve is P=60 -a, what is the profit maximizing quantity (4 d. 15 b 14 a. 1200
In the graph above, MC is the firm's marginal cost curve, ATC is
the firm's average total cost curve, and AVC is the firm's average
variable cost curve. If the firm faces a price between P1 and
P2:
the firm will stay open in both the short run and the long
run.
the firm will stay open in the short run but close in the long
run.
the firm will close in both the short and long run.
- -...
In the graph above, MC is the firm's marginal cost curve, ATC is
the firm's average total cost curve, and AVC is the firm's average
variable cost curve. If the firm faces a price greater than P2,
then
the firm will stay open in both the short and the long run.
the firm will stay open in the short run, but close in the long
run.
the firm will close in both the short and the long run.
Ате 12...
P M C ATC Av In the graph above, MC is the firm's marginal cost curve, ATC is the firm's average total cost curve, and AVC is the firm's average variable cost curve. If the firm faces a price between P1 and P2: the firm will stay open in both the short run and the long run. the firm will stay open in the short run but close in the long run. the firm will close in both the short...
Price, cost ATC AVC Quantity Based on the graph the supply curve for the perfectly competitive firm depicted is most accurately represented by the segment: O O O O Price, cost Quantity Based on the graph above a perfectly competitive firm would never continue operations in short run if the price dropped to which segment of the marginal cost curve? O CE O AD O AC Осо
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