Homework Answers
a.) Firm: A
Under the current demand (d), firm's price = 10 output level = 100.
Firm's economic profit = 300(1000-700)
If price =2, Firm A will shut down it's economic profit = negative
b) Firm : B
Under the current demand (d), firm's price= 7, output level = 150.
Firm's economic profit = 150(1050-900)
If price = 4, Firm B will shut down it's economic profit = negative
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Firm B Firm A Price and Cost (dollars) Price and Cost (dollars) MC OVO O N...
Price, marginal revenue, marginal cost, average total cost $35.... ATC 29.. 26. MC 8 5 0...
Price, marginal revenue, marginal cost, average total cost $35.... ATC 29.. 26. MC 8 5 0 160 220 250 300 Quantity of output (per weok) a. The profit-maximizing monopoly firm maximizes their profit at equals to The firm in the above figure will produce units of output per week. b. This profit-maximizing monopoly firm's price per unit is c. This profit-maximizing monopoly firm's cost per unit at its profit-maximizing quantity is d. This profit-maximizing monopoly firm's economic profit per unit...
I need help on the graph. Price and cost (dollars per burger) The graph shows the...
I need help on the graph.
Price and cost (dollars per burger) The graph shows the demand curve, marginal revenue curve, and cost curves of Bob's Best Burgers, a firm in monopolistic competition. 5.50 Draw an arrow at the profit-maximizing quantity to show the firm's markup. @ 8 ปี Because firms (of which Bob's is one) are_ _ the burger market. _, we would expect firms to O A. making an economic profit, enter O B. incurring an economic loss,...
At the profit-maximizing output, total fixed cost MC MR ATC b AVC hkn Output Multiple Choice...
At the profit-maximizing output, total fixed cost MC MR ATC b AVC hkn Output Multiple Choice is fgab. is Ogan. is ba Dollars Saved If a perfectly competitive firm is producing at the P MC output and realizing an economic profit, at that output Multiple Choice marginal revenue is less than price. marginal revenue exceeds ATC. ATC is being minimized. total revenue equals total cost. The average total cost curve for a perfectly competitive firm. Suppose the marginal cost curve...
Instructions Answer these 3 scenarios. Here is a handout Scenario #1 Scenario #2 Scenario #3 Suppose a price-discrimin...
Instructions
Answer these 3 scenarios. Here is a handout
Scenario #1
Scenario #2
Scenario #3
Suppose a price-discriminating monopoly has segregated its
market into two sub-markets (Market 1 and Market 2) and can prevent
resale between the two. Assume that its marginal cost
is $10 and equal to its average total
cost of $10. The firm's demand schedule for the first
group is given by the first two columns of the table.
Market 1
Market 2
Output
Price
Total Revenue...
please explain answer thank you Price Supply MC Price ATC I MR1 MRO Q0 01 02...
please explain answer thank you
Price Supply MC Price ATC I MR1 MRO Q0 01 02 Market Quantity 90 91 92 Firm Quantity 40. Refer to the graphs shown, which depict a perfectly competitive market and firm. If market demand increases from Do to Di, in the short run: A. market price rises from Po to P, and the firm's output rises from qo to qı. B. market price rises from Po to P, and the firm's output rises from...
Total cost (dollars r hour Quantity (bottles r hour Price Sam's Mineral Springs is a single-price monopoly (dollars...
Total cost (dollars r hour Quantity (bottles r hour Price Sam's Mineral Springs is a single-price monopoly (dollars per bottle 15 The table shows the demand schedule for Sam's Mineral Springs (columns 1 and 2) and the firm's total cost schedule (columns 2 and 3) 14 13 12 Suppose Sam's is hit with a conservation tax of $17 an hour 19 29 What is Sam's new profit-maximizing output, price, and economic profit? 10 When Sam's produces its new profit-maximizing output,...
The figure is drawn for a monopolistically competitive firm. MC ATC 140 123.33 8 PRICE Demand...
The figure is drawn for a monopolistically competitive firm. MC ATC 140 123.33 8 PRICE Demand 90 56.67 MR 100 133.33 QUANTITY Refer to Figure 16-5. The quantity of output at which the MC and ATC curves cross is the long-run equilibrium quantity of output for the firm. short-run equilibrium quantity of output for the firm. efficient scale of the firm. profit-maximizing quantity.
2. Use the graph below to figure out if the following price searching firm is profitable,...
2. Use the graph below to figure out if the following price searching firm is profitable, at zero economic profit, or losing money. Label the firm's demand, MC, ATC, and MR curves. Calculate the quantity of the profit or loss, and indicate what the equilibrium price and quantity is. 30 40 50 60 70 80 90 100Q
Use Figure 1 to answer questions 1-2. Figure 1 Dollars ATC Output 100 150 180 210...
Use Figure 1 to answer questions 1-2. Figure 1 Dollars ATC Output 100 150 180 210 1 Which price corresponds to the breakeven point on the graph? 2. Which price corresponds to the shut-down point on the graph? Use Figure 2 to answer questions 3-5. Figure 2 Dollars MC ATC AVC Output 100 150 180 210 Assume that the market price is $25. 3. Should the firm produce or shutdown? Why? 4. What is the firm's profit maximizing output level?...
#1 1. A firm has the following demand and total cost schedule. TR Profit MR MC O 0 10 20 30 40 50 60 P 100 90 80 70...
#1
1. A firm has the following demand and total cost schedule. TR Profit MR MC O 0 10 20 30 40 50 60 P 100 90 80 70 60 50 40 TC 200 400 600 800 800 1,000 1.200 1.400 a) Is the firm a price-taker or price searcher? Explain. b) Complete the Total Revenue (TR) and Profit schedules. c) How many units of output (Q) should the firm produce to maximize profits? d) What price (P) should the...
Price, marginal revenue, marginal cost, average total cost $35.... ATC 29.. 26. MC 8 5 0 160 220 250 300 Quantity of output (per weok) a. The profit-maximizing monopoly firm maximizes their profit at equals to The firm in the above figure will produce units of output per week. b. This profit-maximizing monopoly firm's price per unit is c. This profit-maximizing monopoly firm's cost per unit at its profit-maximizing quantity is d. This profit-maximizing monopoly firm's economic profit per unit...
I need help on the graph.
Price and cost (dollars per burger) The graph shows the demand curve, marginal revenue curve, and cost curves of Bob's Best Burgers, a firm in monopolistic competition. 5.50 Draw an arrow at the profit-maximizing quantity to show the firm's markup. @ 8 ปี Because firms (of which Bob's is one) are_ _ the burger market. _, we would expect firms to O A. making an economic profit, enter O B. incurring an economic loss,...
At the profit-maximizing output, total fixed cost MC MR ATC b AVC hkn Output Multiple Choice is fgab. is Ogan. is ba Dollars Saved If a perfectly competitive firm is producing at the P MC output and realizing an economic profit, at that output Multiple Choice marginal revenue is less than price. marginal revenue exceeds ATC. ATC is being minimized. total revenue equals total cost. The average total cost curve for a perfectly competitive firm. Suppose the marginal cost curve...
Instructions
Answer these 3 scenarios. Here is a handout
Scenario #1
Scenario #2
Scenario #3
Suppose a price-discriminating monopoly has segregated its
market into two sub-markets (Market 1 and Market 2) and can prevent
resale between the two. Assume that its marginal cost
is $10 and equal to its average total
cost of $10. The firm's demand schedule for the first
group is given by the first two columns of the table.
Market 1
Market 2
Output
Price
Total Revenue...
please explain answer thank you
Price Supply MC Price ATC I MR1 MRO Q0 01 02 Market Quantity 90 91 92 Firm Quantity 40. Refer to the graphs shown, which depict a perfectly competitive market and firm. If market demand increases from Do to Di, in the short run: A. market price rises from Po to P, and the firm's output rises from qo to qı. B. market price rises from Po to P, and the firm's output rises from...
Total cost (dollars r hour Quantity (bottles r hour Price Sam's Mineral Springs is a single-price monopoly (dollars per bottle 15 The table shows the demand schedule for Sam's Mineral Springs (columns 1 and 2) and the firm's total cost schedule (columns 2 and 3) 14 13 12 Suppose Sam's is hit with a conservation tax of $17 an hour 19 29 What is Sam's new profit-maximizing output, price, and economic profit? 10 When Sam's produces its new profit-maximizing output,...
The figure is drawn for a monopolistically competitive firm. MC ATC 140 123.33 8 PRICE Demand 90 56.67 MR 100 133.33 QUANTITY Refer to Figure 16-5. The quantity of output at which the MC and ATC curves cross is the long-run equilibrium quantity of output for the firm. short-run equilibrium quantity of output for the firm. efficient scale of the firm. profit-maximizing quantity.
2. Use the graph below to figure out if the following price searching firm is profitable, at zero economic profit, or losing money. Label the firm's demand, MC, ATC, and MR curves. Calculate the quantity of the profit or loss, and indicate what the equilibrium price and quantity is. 30 40 50 60 70 80 90 100Q
Use Figure 1 to answer questions 1-2. Figure 1 Dollars ATC Output 100 150 180 210 1 Which price corresponds to the breakeven point on the graph? 2. Which price corresponds to the shut-down point on the graph? Use Figure 2 to answer questions 3-5. Figure 2 Dollars MC ATC AVC Output 100 150 180 210 Assume that the market price is $25. 3. Should the firm produce or shutdown? Why? 4. What is the firm's profit maximizing output level?...
#1
1. A firm has the following demand and total cost schedule. TR Profit MR MC O 0 10 20 30 40 50 60 P 100 90 80 70 60 50 40 TC 200 400 600 800 800 1,000 1.200 1.400 a) Is the firm a price-taker or price searcher? Explain. b) Complete the Total Revenue (TR) and Profit schedules. c) How many units of output (Q) should the firm produce to maximize profits? d) What price (P) should the...
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