Your perfectly competitive firm produces 1 million units of output. Your price is $40 per unit and your average total cost is $30 per unit. Your economic profit equals ( in millions)
Economic profit=Total revenue-Total cost
Total Revenue=Price*Quantity=40*1=40 million
Total cost=Average cost*Quantity=30*1=30 million
profit=TR-TC=40-30=10million
Economic profit=10 million
Your perfectly competitive firm produces 1 million units of output. Your price is $40 per unit...
1) A perfectly competitive firm sells 200 units at a market price of $40 per unit. Its marginal cost is $50, and it incurs a variable cost of $10,000. To improve its profit or loss situation, this firm should ? a) shut down b) raise the price to $45 per unit c. reduce output but not to zero d. increase output sold to 300 units e. continue to produce the present level of output
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Hw help please Exhibit 0127: The perfectly competitive firm A Exhibit 0127 Dollars per unit $40 -- MC 36 32 28 4 ATC 20 AVC 16 12 8 ㄧㄏㄧㄒㄧ-ㄱ 100 150 200 250 Answer the following questions based on exhibit 0127. (2 points each) (Show your work and/or exolin your answer) a. What is firm A's proft maximizing level of output? b. What price will firm A have to charge? $ c. At what level of output is firm A's...
Consider a firm operating in a competitive market. The firm is producing 40 units of output, has an average total cost of production equal to $5, and is earning $240 economic profit in the short run. What is the current market price?
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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
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Unsaved change Question 9 10 points Save Answer Figure: The Perfectly Competitive Firm Price (per unit) MC ATC mc C $3.00 2.0 F 1.00.. 07 100 250 300 400 Output (per day) Reference: Ref 12-19 (Figure: The Perfectly Competitive Firm) Look at the figure The Perfectly Competitive Firm. The figure shows a perfectly competitive firm that faces demand curve d and maximizes profit. The firm's economic profit in the long run will be: $275. $300. $0. $250.