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the correct answer is c. as the profit maximising firm would want to locate where mr=mc
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CHAPTER 11 (Competitive market) Figure 2 illustrates the cost and revenue functions for a firm operating...
The following table presents cost and revenue information for a firm operating in a competitive industry...
The following table presents cost and revenue information for a firm operating in a competitive industry Use this table to answer the following questions. (Use the following table. It will not be graded.) Quantity Total Cost Total Revenue Marginal Revenue Profit/Loss 0 1 $4.00 $5.50 $6.50 $8.00 $10.00 $12.50 $15.50 $19.00 $23.00 Price $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 Question 1.a What is the firm's profit-maximizing (or loss-minimizing) quantity? [10 points) Question 1.b When the firm produces...
QUESTION 21 Figure 14-3 Suppose a firm operating in a competitive market has the following cost...
QUESTION 21 Figure 14-3 Suppose a firm operating in a competitive market has the following cost curves: AVC " a"* PRICE " a QQ: QQQ QUANTITY Refer to Figure 14-3. Firms would be encouraged to enter this market for all prices that exceed a. P1 b.P4 c. P2 d. P3- OOOO QUESTION 20 Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: PRICE ----- 1 4 5 2 3 QUANTITY Refer to Figure 14-1....
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...
Figure 14-4 The figure below depicts the cost structure of a firm in a competitive market...
Figure 14-4 The figure below depicts the cost structure of a firm in a competitive market Price „ATC Ps MC 1 AVC 1 1 11 VIL P2P 1 Q1 Q2 Q3 Q4 Quantity - 34. Refer to Figure 14-4. When market price is P2, a profit-maximizing firm's losses can be represented by the area a. (P3-P) x Q2. b. (P2 - P.) ® Q2 c. At a market price of P2, the firm does not have losses. d. At a...
Figure 14-5 Suppose a firm operating in a competitive market has the following cost curves: Price...
Figure 14-5 Suppose a firm operating in a competitive market has the following cost curves: Price MC ATC AVC Q1 02 03 04 05 Quantity Refer to Figure 14-5. When market price is P2, a profit-maximizing firm's losses can be represented by the area a. At a market price of P2, the firm earns profits, not losses. b. At a market price of P2 the firm has losses, but the reference points in the figure don't identify the losses. C....
Figure 14-5 Suppose a firm operating in a competitive market has the following cost curves: MC...
Figure 14-5 Suppose a firm operating in a competitive market has the following cost curves: MC ATC 27 AVC P6 BA P3 P2 P1 01 02 03 04 os இகனாது Refer to Figure 14-5. When market price is P7, a profit-maximizing firm's short-run profits can be represented by the area P7 x Q5 b. P7 x Q3 (P7-P5) x Q3 d. We are unable to determine the firm's profits because the quantity that the firm would produce is not labeled...
Figure 14-4 The figure below depicts the cost structure of a firm in a competitive market....
Figure 14-4 The figure below depicts the cost structure of a firm in a competitive market. Price ATC MC OPS Y 111 AI XAVC II- VIII NA Avi P2P.Erz ii Q1 Q2 Q3 Q1 Quantity 32. Refer to Figure 14-4. When market price is Ps, a profit-maximizing firm's profits can be represented by the area a. Ps x Q3. b. (Ps - P3) * Q2 c. (Ps - Pq) x Q3. d. When market price is Ps there are no...
Total Revenue Marginal Revenue 1) For the following firm in a competitive market, COSTS REVENUES Quantity...
Total Revenue Marginal Revenue 1) For the following firm in a competitive market, COSTS REVENUES Quantity Total Marginal Quantity Produced Cost Cost Demanded Price SO $80 $50 $80 $102 $80 $157 $80 $217 SSO $285 $80 $365 $80 $462 $80 8 $582 IS $80 a) Fill the column for marginal cost, total revenue and marginal revenue. b) What is interesting about the numbers you find for marginal revenue. c) Based on profit maximization rule that you learned in Chapter 14...
Figure 12-4 Price and cost MC ATC AVC $40.50 36.00 30.00 22.00 20.00 -MR 130 180...
Figure 12-4 Price and cost MC ATC AVC $40.50 36.00 30.00 22.00 20.00 -MR 130 180 240 Quantity Figure 12-4 shows the cost and demand curve for a profit-maximizing firm in a perfectly competitive market. 37) Refer to Figure 12-4. If the market price is $30 and if the firm is producing output, what is the amount of its total variable cost? A) $7,200 B) $6,480 C) $5,400 D) $3,960 Figure 15-6 Revenue and cost per unit $30 ATC Demand...
Cost and output data for a pure competitive firm are given below. Assume that the market...
Cost and output data for a pure competitive firm are given below. Assume that the market price facing the firm is $30 per unit. Answer all the questions. Q= Output Total Cost $ 000 95 130 150 175 205 240 285 340 1. What is the AFC for the 7th unit? 2. What is the AVC for the 5th unit? 3. What is the ATC for the 10th unit? 4. What is the MC for the 3rd unit? The 7th...
The following table presents cost and revenue information for a firm operating in a competitive industry Use this table to answer the following questions. (Use the following table. It will not be graded.) Quantity Total Cost Total Revenue Marginal Revenue Profit/Loss 0 1 $4.00 $5.50 $6.50 $8.00 $10.00 $12.50 $15.50 $19.00 $23.00 Price $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 $3.25 Question 1.a What is the firm's profit-maximizing (or loss-minimizing) quantity? [10 points) Question 1.b When the firm produces...
QUESTION 21 Figure 14-3 Suppose a firm operating in a competitive market has the following cost curves: AVC " a"* PRICE " a QQ: QQQ QUANTITY Refer to Figure 14-3. Firms would be encouraged to enter this market for all prices that exceed a. P1 b.P4 c. P2 d. P3- OOOO QUESTION 20 Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: PRICE ----- 1 4 5 2 3 QUANTITY Refer to Figure 14-1....
Figure 14-4 The figure below depicts the cost structure of a firm in a competitive market Price „ATC Ps MC 1 AVC 1 1 11 VIL P2P 1 Q1 Q2 Q3 Q4 Quantity - 34. Refer to Figure 14-4. When market price is P2, a profit-maximizing firm's losses can be represented by the area a. (P3-P) x Q2. b. (P2 - P.) ® Q2 c. At a market price of P2, the firm does not have losses. d. At a...
Figure 14-5 Suppose a firm operating in a competitive market has the following cost curves: Price MC ATC AVC Q1 02 03 04 05 Quantity Refer to Figure 14-5. When market price is P2, a profit-maximizing firm's losses can be represented by the area a. At a market price of P2, the firm earns profits, not losses. b. At a market price of P2 the firm has losses, but the reference points in the figure don't identify the losses. C....
Figure 14-5 Suppose a firm operating in a competitive market has the following cost curves: MC ATC 27 AVC P6 BA P3 P2 P1 01 02 03 04 os இகனாது Refer to Figure 14-5. When market price is P7, a profit-maximizing firm's short-run profits can be represented by the area P7 x Q5 b. P7 x Q3 (P7-P5) x Q3 d. We are unable to determine the firm's profits because the quantity that the firm would produce is not labeled...
Figure 14-4 The figure below depicts the cost structure of a firm in a competitive market. Price ATC MC OPS Y 111 AI XAVC II- VIII NA Avi P2P.Erz ii Q1 Q2 Q3 Q1 Quantity 32. Refer to Figure 14-4. When market price is Ps, a profit-maximizing firm's profits can be represented by the area a. Ps x Q3. b. (Ps - P3) * Q2 c. (Ps - Pq) x Q3. d. When market price is Ps there are no...
Total Revenue Marginal Revenue 1) For the following firm in a competitive market, COSTS REVENUES Quantity Total Marginal Quantity Produced Cost Cost Demanded Price SO $80 $50 $80 $102 $80 $157 $80 $217 SSO $285 $80 $365 $80 $462 $80 8 $582 IS $80 a) Fill the column for marginal cost, total revenue and marginal revenue. b) What is interesting about the numbers you find for marginal revenue. c) Based on profit maximization rule that you learned in Chapter 14...
Figure 12-4 Price and cost MC ATC AVC $40.50 36.00 30.00 22.00 20.00 -MR 130 180 240 Quantity Figure 12-4 shows the cost and demand curve for a profit-maximizing firm in a perfectly competitive market. 37) Refer to Figure 12-4. If the market price is $30 and if the firm is producing output, what is the amount of its total variable cost? A) $7,200 B) $6,480 C) $5,400 D) $3,960 Figure 15-6 Revenue and cost per unit $30 ATC Demand...
Cost and output data for a pure competitive firm are given below. Assume that the market price facing the firm is $30 per unit. Answer all the questions. Q= Output Total Cost $ 000 95 130 150 175 205 240 285 340 1. What is the AFC for the 7th unit? 2. What is the AVC for the 5th unit? 3. What is the ATC for the 10th unit? 4. What is the MC for the 3rd unit? The 7th...
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