d. Less than 5 - is correct
In short run firms shut down when price falls below average variable cost. Fixed cost is incurred irrespective the firm is operating or not. So when price falls below 5 firms should shut down.
Assume that all firms in this industry have identical cost curves, and that the market is...
Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive. a) If the short-run supply curve is S1, what quantity does a firm produce? b) In the long-run, what quantity does a firm produce? Entire Market Representative Firm SU MC ATC RAVC Price ($/gallon) Price (s/gallon) W N N ослол оло LLL - - - - - TV - - - - - 0 2 4 6 8 10 12 0 1...
Number 6 . Can you explain the reasoning behind please 6. A perfectly competitive firm produces where p MC-ATC. -M尺 a. Its marginal revenue is always equal to the market price. b. Its marginal cost is always equal to the market price. c. Its marginal revenue is always equal to the average total cost. d. All of the above are correct. 7. The fol llowing graphs show the market for a good traded in a perfectly competitive market, and the...
Consider a perfectly competitive market for titanium. Assume that all firms in the industry are identical and have the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. Assume also that it does not matter how many firms are in the industry Tool Tip: Place the mouse cursor over orange square points on the MC curve to see coordinates. COST PER UNIT IDollars per pound) 10 MC ATC AVC 0 5...
Аа Аа Consider a perfectly competitive market for titanium. Assume that all firms in the industry are identical and have the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph. Assume also that it does not matter how many firms are in the industry. Tool Tip: Place the mouse cursor over orange square points on the MC curve to see coordinates. COSTS Dollars per pound) 10 MC 9 8 7 ATC...
A perfectly competitive industry is composed of 1000 identical firms with cost structure: TCVC FC AVC ATC MC 40 10 80 20 100 30 140 40 200 280 60 380 a) Complete the preceding Table. b) Assuming that the market price is p = 8, what are the quantity produced by each firm and the profit it makes?
For a perfectly competitive market made up of firms represented in the graph below, what is the long run equilibrium price of the good? Cost ($) MC ATC AVC $16 $14 $12 $10 Quantity $14 $10 $12 $16 For a perfectly competitive market made up of firms represented in the graph below, if the price is $14, Cost ($) MC ATC $16 AVC - $14 $12 $10 Quantity The firm is operating at its minimum long run average total cost....
Suppose there is a perfectly competitive industry where all the firms are identical with identical cost curves. Furthermore, suppose that a representative firm’s total cost is given by the equation TC = 100 + q2 + q where q is the quantity of output produced by the firm. You also know that the market demand for this product is given by the equation P = 900 - 2Q where Q is the market quantity. In addition, you are told that...
Consider the competitive market for copper. Assume that, regardless of how many firms are in the industry, every firm in the industry is identical and faces the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves shown on the following graph 0 ATC 32 O 24 AVC 0 3 6 912 15 18 2124 27 30 QUANTITY (Thousands of pounds)
5 Android Phones - 2 points Suppose the market for Android smart phones is perfectly competitive. All firms are identical with the same cost functions: TC = 9° +800+100, MC = 2q + 80, (q is the quantity produced by a representative firm). The market demand is P = 150 - Q. (Q is market quantity). (a) Given the above information: find the equation for FC, VC, TC, ATC, and AVC. (1/2 point) (b) Determine q, P and the number...
3. The following graph shows the cost and revenue curves for a firm in a perfectly competitive market. 90 80 D=MR 70 60 ATC Price and cost ($) 50 AVC 40 30 MC 20 10 0 10 20 30 40 50 60 70 80 90 a) Assume that new firms enter this market and that drives the price down to $35 per unit. Will the firm continue to produce or shut down? Explain your answer.