Homework Answers
10. A profit maximizing perfectly competitive firm produces at the point where price = MC. From the graph it can be seen that, profit maximizing price is $12 and profit maximizing quantity is 20. At that profit maximizing output level, ATC = $16. Total revenue = $(12*20) = $240 and Total cost = $(16*20) = $320.
The economic profit = TR - TC = $(240 - 320) = - $80
Answer: option D
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10) The graph below shows the cost curves for coffee beans for a representative firm in...
11) In the figure below, panel (a) depicts the linear marginal cost of a firm in...
11) In the figure below, panel (a) depicts the linear marginal cost of a firm in a competitive market, and panel (b) depicts the linear market supply curve for a market with a fixed number of identical firms. (a) Firm (Market 200 Own 02 Oy If there are 200 identical firms in this market, what level of output will be supplied to the market when price is $1.00? a) 2,000 b) 5,000 c) 10,000 d) 20,000
Figure 14-7 In the figure, panel (a) depicts the linear marginal cost of a firm in a competitive market and panel (b) d...
Figure 14-7 In the figure, panel (a) depicts the linear marginal cost of a firm in a competitive market and panel (b) depicts the linear market supply curve for a market with a fixed number of identical firms. Price Price Supply 2.00 1.00! 100 Quantity 200 Quantity Firm Q, Q Market Refer to Figure 14-7. If at a market price of $2.50, 62,500 units of output are supplied to this market. How many identical firms are participating in this market?...
The first picture below depicts the cost curves for a representative firm in this perfectly competitive industry. Initia...
The first picture below depicts the cost curves for a
representative firm in this perfectly competitive industry.
Initially, there are 100 firms. The second picture depicts market
demand.
A) Suppose that the firm produces 300 units of output, how much
are their total costs?
B) What is the short-run equilibrium price?
C) At the short-run equilibrium price, what is the quantity
produced by each firm?
D) At the short-run equilibrium price, what is per-firm
profit?
E) In the long-run,...
The following graph shows the daily cost curves of a firm operating in a perfectly competitive...
The following graph shows the daily cost curves of a firm operating in a perfectly competitive market. Suppose the market price for the good is $80 per unit Use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss at the market price of $80 per unit if the firm chooses to produce the profit-maximizing quantity of output Profit or Loss PRICE AND COST (Dollars) QUANTITY (Thousands of units) At the market price of $80...
The graph titled Soy Bean Market is a graph of the market for soy beans, a...
The graph titled Soy Bean Market is a graph of the market for soy beans, a perfectly (purely) competitive market. The graph titled Roy's Soys depicts an individual firm in the market for soy beans. The market and the firm are currently in long-run equilibrium at Point A. Show what happens in the short run on both graphs when a new medical study shows soy beans to be an effective weight-loss supplement. On the market graph, shift a curve (or...
3. The following graph shows the cost and revenue curves for a firm in a perfectly...
3. The following graph shows the cost and revenue curves for a firm in a perfectly competitive market. 90 80 D=MR 70 60 ATC Price and cost ($) 50 AVC 40 30 MC 20 10 0 10 20 30 40 50 60 70 80 90 a) Assume that new firms enter this market and that drives the price down to $35 per unit. Will the firm continue to produce or shut down? Explain your answer.
Figure 14-9 In the figure below, panel (a) depicts the linear marginal cost of a firm...
Figure 14-9 In the figure below, panel (a) depicts the linear marginal cost of a firm in a competitive market, and panel (b) depicts the linear market supply curve for a market with a fixed number of identical firms. TP (a) Firm () Market 1200 $100 1100 03 Quarto 22. Refer to Figure 14-9. If there are 300 identical firms in this market, what level of output will be supplied to the market when price is $1.00? a. 6,000 b....
A Hide Time Remaining a Figure 14-10 In the figure below, panel (a) depicts the linear...
A Hide Time Remaining a Figure 14-10 In the figure below, panel (a) depicts the linear marginal cost of a firm in a competitive market, and panel (b) depicts the linear market supply curve for a market with a fixed number of identical firma Firm 0) Market мс Refer to Figure 14-10. If there are 500 identical firms in this market, what is the valuue of O17 OA 10,000 OB. 20,000 OC S0,000 OD. I50,000 Selection
in short run this firm will___ in long run this firm will___ a. Label the graph...
in short run this firm will___
in long run this firm will___
a. Label the graph that represents the market "Market" and the graph that depicts a perfectly competitive representative firm for this industry "Firm". Label the axes and all of the curves. (4 points) b. Label market equilibrium. Draw in the firm's price line. Indicate the profit maximizing level of output for the firm and illustrate the area of profits/losses. (4 points)
Assume that all firms in this industry have identical cost curves, and that the market is...
Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive. a) If the short-run supply curve is S1, what quantity does a firm produce? b) In the long-run, what quantity does a firm produce? Entire Market Representative Firm SU MC ATC RAVC Price ($/gallon) Price (s/gallon) W N N ослол оло LLL - - - - - TV - - - - - 0 2 4 6 8 10 12 0 1...
11) In the figure below, panel (a) depicts the linear marginal cost of a firm in a competitive market, and panel (b) depicts the linear market supply curve for a market with a fixed number of identical firms. (a) Firm (Market 200 Own 02 Oy If there are 200 identical firms in this market, what level of output will be supplied to the market when price is $1.00? a) 2,000 b) 5,000 c) 10,000 d) 20,000
Figure 14-7 In the figure, panel (a) depicts the linear marginal cost of a firm in a competitive market and panel (b) depicts the linear market supply curve for a market with a fixed number of identical firms. Price Price Supply 2.00 1.00! 100 Quantity 200 Quantity Firm Q, Q Market Refer to Figure 14-7. If at a market price of $2.50, 62,500 units of output are supplied to this market. How many identical firms are participating in this market?...
The first picture below depicts the cost curves for a
representative firm in this perfectly competitive industry.
Initially, there are 100 firms. The second picture depicts market
demand.
A) Suppose that the firm produces 300 units of output, how much
are their total costs?
B) What is the short-run equilibrium price?
C) At the short-run equilibrium price, what is the quantity
produced by each firm?
D) At the short-run equilibrium price, what is per-firm
profit?
E) In the long-run,...
The following graph shows the daily cost curves of a firm operating in a perfectly competitive market. Suppose the market price for the good is $80 per unit Use the blue rectangle (circle symbols) to shade the area representing the firm's profit or loss at the market price of $80 per unit if the firm chooses to produce the profit-maximizing quantity of output Profit or Loss PRICE AND COST (Dollars) QUANTITY (Thousands of units) At the market price of $80...
The graph titled Soy Bean Market is a graph of the market for soy beans, a perfectly (purely) competitive market. The graph titled Roy's Soys depicts an individual firm in the market for soy beans. The market and the firm are currently in long-run equilibrium at Point A. Show what happens in the short run on both graphs when a new medical study shows soy beans to be an effective weight-loss supplement. On the market graph, shift a curve (or...
3. The following graph shows the cost and revenue curves for a firm in a perfectly competitive market. 90 80 D=MR 70 60 ATC Price and cost ($) 50 AVC 40 30 MC 20 10 0 10 20 30 40 50 60 70 80 90 a) Assume that new firms enter this market and that drives the price down to $35 per unit. Will the firm continue to produce or shut down? Explain your answer.
Figure 14-9 In the figure below, panel (a) depicts the linear marginal cost of a firm in a competitive market, and panel (b) depicts the linear market supply curve for a market with a fixed number of identical firms. TP (a) Firm () Market 1200 $100 1100 03 Quarto 22. Refer to Figure 14-9. If there are 300 identical firms in this market, what level of output will be supplied to the market when price is $1.00? a. 6,000 b....
A Hide Time Remaining a Figure 14-10 In the figure below, panel (a) depicts the linear marginal cost of a firm in a competitive market, and panel (b) depicts the linear market supply curve for a market with a fixed number of identical firma Firm 0) Market мс Refer to Figure 14-10. If there are 500 identical firms in this market, what is the valuue of O17 OA 10,000 OB. 20,000 OC S0,000 OD. I50,000 Selection
in short run this firm will___
in long run this firm will___
a. Label the graph that represents the market "Market" and the graph that depicts a perfectly competitive representative firm for this industry "Firm". Label the axes and all of the curves. (4 points) b. Label market equilibrium. Draw in the firm's price line. Indicate the profit maximizing level of output for the firm and illustrate the area of profits/losses. (4 points)
Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive. a) If the short-run supply curve is S1, what quantity does a firm produce? b) In the long-run, what quantity does a firm produce? Entire Market Representative Firm SU MC ATC RAVC Price ($/gallon) Price (s/gallon) W N N ослол оло LLL - - - - - TV - - - - - 0 2 4 6 8 10 12 0 1...
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