Homework Answers
TR=P*Q
55,000=P*1,000
P=55
MC=55
A competitive firm is in equilibrium when P=MC but in this case P=MC<ATC.
When P<ATC the firm incur losses and it should reduce production so that average cost falls.
Answer-decrease output
Add Answer to:
please explain
Afirm in a perfectly competitive Industry is producing 1,000 units of output and earning...
Please explain the process to solve these A firm in a perfectly competitive industry is producing...
Please explain the process to solve these
A firm in a perfectly competitive industry is producing 1,000 units of output and earning total revenue of $55,000. If average total cost is equal to $60, marginal cost is equal to $55, and fixed costs are equal to $1,000 at that level of output, what should the firm do to maximize profit? VIEW RESULTS START shut down MC138716 increase output MC138717 decrease output (but not shut down) MC138718 The firm is already...
A firm in a perfectly competitive industry is currently producing 150 units of output at a...
A firm in a perfectly competitive industry is currently producing 150 units of output at a price of $55 per unit. If marginal cost is equal to $50 and profit is equal to $500 at that level of output, what should the firm do, if anything, to maximize profit?
Question 31 2.5 pts 31. A firm in a perfectly competitive industry has total revenue of...
Question 31 2.5 pts 31. A firm in a perfectly competitive industry has total revenue of $200,000 per year when producing 1,000 units of output per year. In this case its average revenue is $200 and its marginal revenue is __ zero. also $200 less than $200. O greater than $200 Question 32 2.5 pts 32. In a perfectly competitive industry, the market price of the product is $12.Firm A is producing the output at which average total cost equals...
If a perfectly competitive firm is producing where price is equal to $20, marginal cost is...
If a perfectly competitive firm is producing where price is equal to $20, marginal cost is equal to $25, and average variable cost is equal to $15, what should the firm do, if anything, to maximize its profit? O A. increase output O B. shut down O C. decrease output (but not shut down) OD. The firm is already maximizing profit.
24. In a competitive industry the market price of output is $24. A firm is producing...
24. In a competitive industry the market price of output is $24. A firm is producing that level of output at which average total cost is $30, marginal cost is $25, and average fixed cost is $5. In order to maximize profit (or minimize losses), the firm should a. increase output b. decrease output but keep producing. c. leave output unchanged. d. shut down 25. In long-run competitive equilibrium, a. economic profit is zero. b. P LMC. c. P LAC....
If a perfectly competitive firm is producing 150 units of output at a price of P=$20,...
If a perfectly competitive firm is producing 150 units of output at a price of P=$20, where the MC of the 150th unit of output is MC=$20, the ATC of the 150th unit is ATC=$10, and the AVC of the 150th unit is AVC=$8, then which of the following statements is not correct? a. The firm should shut down when the price is less or equal to $8. b. The firm is producing at the profit maximizing level of output....
Assume that you own a business that competes in a perfectly competitive industry producing a good...
Assume that you own a business that competes in a perfectly competitive industry producing a good that sells for $80. The table below represents some production alternatives for you. How many units would you produce if you wanted to maximize economic profit? Output Total Cost 0 $20 1 $70 2 $110 3 $170 4 $250 5 $370 6 $570 None, this firm should shut down. 4 units 5 units 6 units
For a perfectly competitive firm, marginal revenue equals marginal cost at 250 units of output. At...
For a perfectly competitive firm, marginal revenue equals marginal cost at 250 units of output. At 250 units, price is greater than average variable cost. It necessarily follows that the Select one: a. marginal cost curve must have an upward-sloping portion and a downward-sloping portion. b. firm must be earning a profit. c. firm should continue to produce in the short run. d. firm should shut down its operation in the short run Next page Seo w
If a perfectly competitive firm is producing 2,000 units and , at the 2,000th unit, the...
If a perfectly competitive firm is producing 2,000 units and , at the 2,000th unit, the difference between marginal revenue and marginal cost (MR-MC) is zero, which of the following is true? A) The firm should exactly double production to maximize profit B) The firm should decrease production to maximize profit C)The firm is maximizing profit D)The firm should increase production to maximize profit
20. Which of the following statements is not a characteristic of a perfectly competitive firm? a....
20. Which of the following statements is not a characteristic of a perfectly competitive firm? a. Perfectly competitive firms view each other as fierce rivals. b. Firms are price-takers. c. All firms produce a homogeneous product. d. Perfectly competitive markets allow freedom of entry and exit. 21. Since the firm’s demand curve is perfectly elastic for a price-taking firm, a. P = MR. b. P = MRP. c. P = TR. d. both a and b. e. both a and...
Please explain the process to solve these
A firm in a perfectly competitive industry is producing 1,000 units of output and earning total revenue of $55,000. If average total cost is equal to $60, marginal cost is equal to $55, and fixed costs are equal to $1,000 at that level of output, what should the firm do to maximize profit? VIEW RESULTS START shut down MC138716 increase output MC138717 decrease output (but not shut down) MC138718 The firm is already...
Question 31 2.5 pts 31. A firm in a perfectly competitive industry has total revenue of $200,000 per year when producing 1,000 units of output per year. In this case its average revenue is $200 and its marginal revenue is __ zero. also $200 less than $200. O greater than $200 Question 32 2.5 pts 32. In a perfectly competitive industry, the market price of the product is $12.Firm A is producing the output at which average total cost equals...
If a perfectly competitive firm is producing where price is equal to $20, marginal cost is equal to $25, and average variable cost is equal to $15, what should the firm do, if anything, to maximize its profit? O A. increase output O B. shut down O C. decrease output (but not shut down) OD. The firm is already maximizing profit.
24. In a competitive industry the market price of output is $24. A firm is producing that level of output at which average total cost is $30, marginal cost is $25, and average fixed cost is $5. In order to maximize profit (or minimize losses), the firm should a. increase output b. decrease output but keep producing. c. leave output unchanged. d. shut down 25. In long-run competitive equilibrium, a. economic profit is zero. b. P LMC. c. P LAC....
For a perfectly competitive firm, marginal revenue equals marginal cost at 250 units of output. At 250 units, price is greater than average variable cost. It necessarily follows that the Select one: a. marginal cost curve must have an upward-sloping portion and a downward-sloping portion. b. firm must be earning a profit. c. firm should continue to produce in the short run. d. firm should shut down its operation in the short run Next page Seo w
Most questions answered within 3 hours.
-
A solid wood door 1.00 m wide and 2.00 m high is hinged along
one side...
asked 20 seconds ago -
Discounting cash flows involves:
A. taking the cash discount offered on a trade merchandise
B. estimating...
asked 21 seconds ago -
Raleigh Company manufactures two joint products. At the
split-off point, they have sales values of:
Product...
asked 12 seconds from now -
A
projectile is blue at a target. The distance from the point of
impact to the...
asked 1 minute ago -
1. Your grandmother has invested $4000 in a mutual fund each
year on your birthday (she...
asked 1 minute ago -
HELP WITH SAS
Run the following DATA step to create a SAS data set called
ABC_CORP....
asked 14 minutes ago -
A researcher wishes to study the cumulative effects of several
combinations of HIV drugs. There are...
asked 34 minutes ago -
How
to make a simple game of whack a mole in pygame
asked 17 minutes ago -
Write a c/c++ program to read a list of students from a file and
create a...
asked 26 minutes ago -
Identify two different methods for collecting data in
qualitative research. What are the benefits and challenges...
asked 27 minutes ago -
I am suppose to have my array before the main class but I am
getting the...
asked 29 minutes ago -
Your task is to design the page table for the 32bit Pentium
microprocessor. Answer the following...
asked 35 minutes ago