Homework Answers
Answer
Option 1
the firm produces at P=MC to maximize profit if P>AVC and the
output level is 600 units where the firm already producing means
the firm is producing at the profit-maximizing quantity
the P>AVC at the output from the graph.
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Exhibit 12-2 Short Run Morginal Cost Average $105---- Total $88------ Cost Average Variable $55 - Cost...
The graph below shows the marginal, average variable, and average total cost curves for a pizza...
The graph below shows the marginal, average variable, and average total cost curves for a pizza seller. Refer to the graph to answer the following questions. Instructions: Indicate the profit-maximizing level of output. Enter your response as a whole number. Cost Curves 3.50 3.25 3.00 2.75 Select Select Select 2.50 (S/slice) 2.00 W 1.75 1.50 1.25 1.00 0.75 0.50 0.25 100 200 300 400 500 600 700 800 900 Q -> Quantity (slices/day) a. What is the amount of the...
56,57 Exhibit 89 Marginal cost Average total cost Dollars per unit Average variable cost 92999 Quantity per period 5...
56,57
Exhibit 89 Marginal cost Average total cost Dollars per unit Average variable cost 92999 Quantity per period 56. Refer to Exhibit 8.9, which shows a perfectly competitive firm's short-run output decisions. At price Pa, the form a. produces nothing. b. produces at a specific output to minimize its short-run loss. c. earns short-run economic profit by producing at a specific output. d. is indifferent between producing and shutting down. e, produces at a specific output to earn a normal...
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....
Help with 14-16 please. 14. A Monopoly: A. Will realize an economic profit if price exceeds...
Help with 14-16 please.
14. A Monopoly: A. Will realize an economic profit if price exceeds ATC at the profit-maximizing/loss-minimizing level of output. B. Will realize an economic profit if ATC exceeds MR at the profit-maximizing/loss-minimizing level of output c. Will realize an economic loss if MC intersects the down-sloping portion of MR D. Always realizes an economic profit. MC ATC AVC 15. At equilibrium, the profit-maximizing monopolist facing the situation shown in the graph above will face: A. Average...
If an increase in the demand for corn leads to economic profits for corn farmers, new...
If an increase in the demand for corn leads to economic profits for corn farmers, new corn farmers will enter the industry. the price of corn will remain high low in the long run. o the suppliers of corn will suffer long-run economic losses. all of the above are correct. Scenario 9-1 Assume a certain competitive price-taker firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total...
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...
Exhibit 8-7 A firm's cost and MR curves In Exhibit 8-7, if this firm is currently producing 20 units of output, this...
Exhibit 8-7 A firm's cost and MR curves In Exhibit 8-7, if this firm is currently producing 20 units of output, this firm: Group of answer choices A. is at its profit-maximizing point. B. could increase profits by increasing output. C. could increase profits by decreasing output. D. should shut down. E. should decrease price. Cost, 25 MR revenues 22 (dollars) 20 Quantity
Question 45 Not yet answered Marked out of 2.00 p Flag question Exhibit 8.9 Marginal cost...
Question 45 Not yet answered Marked out of 2.00 p Flag question Exhibit 8.9 Marginal cost 5 d Ps Average total cost 44 d4 D Dollars per unit 3 Average variable cost d, 0 99% Quantity per period 9 Refer to Exhibit 8.9 for a perfectly competitive firm's short-run output decisions. At price p5, the firm Refer to Exhibit 8.9 for a perfectly competitive firm's short-run output decisions. At price p5, the firm Select one: O a. produces at a...
Use the following to answer questions 11-13: Figure: Interpreting Short-Run Cost Curves ATC 1.2 AVC 1.0...
Use the following to answer questions 11-13: Figure: Interpreting Short-Run Cost Curves ATC 1.2 AVC 1.0 MC 0.8 0.6 0.4 0.2 0 0.2 0.4 0.6 0.8 1.0 1.2 Output 11. (Figure: Interpreting Short-Run Cost Curves) Using information from the figure equals $0.40, the firm should: A) stay open because it is making an economic profit B) stay open in the short run because it is operating at an economic loss C) stay open because it is making a normal profit....
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.
The graph below shows the marginal, average variable, and average total cost curves for a pizza seller. Refer to the graph to answer the following questions. Instructions: Indicate the profit-maximizing level of output. Enter your response as a whole number. Cost Curves 3.50 3.25 3.00 2.75 Select Select Select 2.50 (S/slice) 2.00 W 1.75 1.50 1.25 1.00 0.75 0.50 0.25 100 200 300 400 500 600 700 800 900 Q -> Quantity (slices/day) a. What is the amount of the...
56,57
Exhibit 89 Marginal cost Average total cost Dollars per unit Average variable cost 92999 Quantity per period 56. Refer to Exhibit 8.9, which shows a perfectly competitive firm's short-run output decisions. At price Pa, the form a. produces nothing. b. produces at a specific output to minimize its short-run loss. c. earns short-run economic profit by producing at a specific output. d. is indifferent between producing and shutting down. e, produces at a specific output to earn a normal...
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....
Help with 14-16 please.
14. A Monopoly: A. Will realize an economic profit if price exceeds ATC at the profit-maximizing/loss-minimizing level of output. B. Will realize an economic profit if ATC exceeds MR at the profit-maximizing/loss-minimizing level of output c. Will realize an economic loss if MC intersects the down-sloping portion of MR D. Always realizes an economic profit. MC ATC AVC 15. At equilibrium, the profit-maximizing monopolist facing the situation shown in the graph above will face: A. Average...
If an increase in the demand for corn leads to economic profits for corn farmers, new corn farmers will enter the industry. the price of corn will remain high low in the long run. o the suppliers of corn will suffer long-run economic losses. all of the above are correct. Scenario 9-1 Assume a certain competitive price-taker firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total...
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...
Question 45 Not yet answered Marked out of 2.00 p Flag question Exhibit 8.9 Marginal cost 5 d Ps Average total cost 44 d4 D Dollars per unit 3 Average variable cost d, 0 99% Quantity per period 9 Refer to Exhibit 8.9 for a perfectly competitive firm's short-run output decisions. At price p5, the firm Refer to Exhibit 8.9 for a perfectly competitive firm's short-run output decisions. At price p5, the firm Select one: O a. produces at a...
Use the following to answer questions 11-13: Figure: Interpreting Short-Run Cost Curves ATC 1.2 AVC 1.0 MC 0.8 0.6 0.4 0.2 0 0.2 0.4 0.6 0.8 1.0 1.2 Output 11. (Figure: Interpreting Short-Run Cost Curves) Using information from the figure equals $0.40, the firm should: A) stay open because it is making an economic profit B) stay open in the short run because it is operating at an economic loss C) stay open because it is making a normal profit....
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.
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