Homework Answers
| Christmas Trees | Total Cost $ | Marginal Cost | ||||||||||
| 1 | 60 | |||||||||||
| 2 | 90 | 30 | ||||||||||
| 3 | 162 | 72 | ||||||||||
| 4 | 246 | 84 | ||||||||||
| 5 | 342 | 96 | ||||||||||
| 6 | 450 | 108 | ||||||||||
| 7 | 570 | 120 | ||||||||||
| Marginal cost is the additional cost of producing one more tree. | ||||||||||||
| Market price is $90 per tree | ||||||||||||
| Profit-maximizing output for a perfectly competitive firm in the short run is P=MC. The firm will produce output at which P=MC. For a competitive firm, MR=P. | ||||||||||||
| Sophia should grow 4 trees as MR (Price) is > Marginal cost. | ||||||||||||
| If she grows 5 trees then MC will be greater than MR. | ||||||||||||
| Profit will be Total Revenue - Total Cost | ||||||||||||
| Total Revenue= $90 x 4= $360. | ||||||||||||
| Total cost= $246. | ||||||||||||
| Profit= $360 - $246=$114. | ||||||||||||
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Sophia grows Christmas trees. Her cost of production is shown in the table below. Christmas Trees...
Suppose the market for Christmas trees is perfectly competitive and that the market price for Christmas...
Suppose the market for Christmas trees is perfectly competitive
and that the market price for Christmas trees is
$120 per tree.
a) How many Christmas trees should Sophia grow?
b) What us Sophias profit?
Sophia grows Christmas trees. Her cost of production is shown in the table below. Christmas Trees VOOR WN Total Cost $80 $120 $216 $328 $456 $600 $760
MC Suppose the market for peaches is perfectly competitive. The short-run average total cost and marginal...
MC Suppose the market for peaches is perfectly competitive. The short-run average total cost and marginal cost of growing peaches for an individual grower are illustrated in the figure to the right. ATC Assume that the market price for peaches is $34.00 per box What is the profit-maximizing quantity for peach growers to produce? boxes. (Enter your response as an integer.) Price (dollars per box) (Enter At this level of output, profit will be $ your response rounded to the...
12.00 Lauren grows grapes. Her average variable cost (AVC), average total cost (ATC), and marginal cost...
12.00 Lauren grows grapes. Her average variable cost (AVC), average total cost (ATC), and marginal cost (MC) of production are illustrated in the figure to the right. 11.00 Assume the market for grapes is perfectly competitive and that the market price is $2.00 per crate. MC Characterize Lauren's economic profits. Assume she produces such that she maximizes profits in the short run. ATC Using the rectangle drawing tool, shade in Lauren's economic profits. Attach the correct label to indicate whether...
Suppose the market for apples is perfectly competitive. The short-run average total cost and marginal cost...
Suppose the market for apples is perfectly competitive. The short-run average total cost and marginal cost MC of growing apples for an individual grower are illustrated in the figure to the right. Assume that the market price for apples is $34.00 per box. What is the profit-maximizing quantity for apple growers to produce?boxes. Enter your response as an integer.) At this level of output, profit will be Enter your response rounded to the nearest dollar.) Apple growers will earn positive...
Suppose the market for apples is perfectly competitive. The short-run average total cost and marginal cost...
Suppose the market for apples is perfectly competitive. The short-run average total cost and marginal cost of growing apples for an individual grower are illustrated in the figure to the right. 10- 9- Assume that the market price for apples is $5.50 per box. What is the profit-maximizing quantity for apple growers to produce? boxes. (Enter your response as an integer.) 8- C 7- MC co Price (dollars per box) 5- 4- ATC 3- 2- 1 O- 10 90 100...
Business Analytics Harry's Hardware does a brisk husivess during the yeasr, bun daringCsea sells Christmas trees...
Business Analytics
Harry's Hardware does a brisk husivess during the yeasr, bun daringCsea sells Christmas trees for a subetanial profit. Unfonurmely,an season ate tnially worthicss. Thus. ihe nubrol urces that an sukdter important decision. The tollowing tahle tevcals the denand ior Chries tees Tan soa DEM AND FOR C RISTMAS TREES PROBABLITY 123 130 173 200 0.2 0.3 0.2 04)5 Harry sells trees tor $15 cach, but his cust is only S6 a How mary trees should Hary (b) If...
The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies,...
The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a perfectly competitive firm that produces novelty ear buds in a competitive market. The market price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC ATC of Ear Buds ($) ($) 10 3.5 15 2 2.44 2.86 3.56 4.02 3.17 5.48 3.5 40 5.98 3.81 45 8.49 4.33 20 25 35 Instructions: In part a, enter your answer as the closest...
The table below shows the weekly marginal cost (MC) and averagetotal cost (ATC) for Buddies,...
The table below shows the weekly marginal cost (MC) and average
total cost (ATC) for Buddies, a perfectly competitive firm that
produces novelty ear buds in a competitive market. The market price
of ear buds is $6.00 per pair.Buddies Production CostsQuantity of Ear BudsMCATC($)($)5-81025152.454.15203.5542544305.54.253564.5408.55Instructions: In part a, enter your answer as
the closest given whole number.a. If Buddies wants to maximize its profits, how many pairs of
ear buds should it produce?_______ pairsInstructions: In parts b-d, round your answers
to...
3. Consider a firm in a perfectly competitive industry with a cost structure as shown in...
3. Consider a firm in a perfectly competitive industry with a cost structure as shown in the table below. (a) If the market price is $360, will the firm produce at all? (b) If so, how much and why that particular quantity? (c) Calculate the economic profit or loss at the optimal level of output. Clearly show any calculations performed and explain reasoning used to arrive at your answers. AFC Output 0 AVC ATC MC Your answers 1 (a) 2...
A firm produces a product in a competitive industry and has a total cost function (TC)...
A firm produces a product in a competitive industry and has a total cost function (TC) of TC(a) 60+4q+2q2 and a marginal cost function (MC) of MC(q) = 4 + 4q. At the given market price (P) of $20, the firm is producing 4.00 units of output. Is the firm maximizing profit?V What quantity of output should the firm produce in the long run? The firm should produce unit(s) of output. (Enter your response as an integer.)
Suppose the market for Christmas trees is perfectly competitive
and that the market price for Christmas trees is
$120 per tree.
a) How many Christmas trees should Sophia grow?
b) What us Sophias profit?
Sophia grows Christmas trees. Her cost of production is shown in the table below. Christmas Trees VOOR WN Total Cost $80 $120 $216 $328 $456 $600 $760
MC Suppose the market for peaches is perfectly competitive. The short-run average total cost and marginal cost of growing peaches for an individual grower are illustrated in the figure to the right. ATC Assume that the market price for peaches is $34.00 per box What is the profit-maximizing quantity for peach growers to produce? boxes. (Enter your response as an integer.) Price (dollars per box) (Enter At this level of output, profit will be $ your response rounded to the...
12.00 Lauren grows grapes. Her average variable cost (AVC), average total cost (ATC), and marginal cost (MC) of production are illustrated in the figure to the right. 11.00 Assume the market for grapes is perfectly competitive and that the market price is $2.00 per crate. MC Characterize Lauren's economic profits. Assume she produces such that she maximizes profits in the short run. ATC Using the rectangle drawing tool, shade in Lauren's economic profits. Attach the correct label to indicate whether...
Suppose the market for apples is perfectly competitive. The short-run average total cost and marginal cost MC of growing apples for an individual grower are illustrated in the figure to the right. Assume that the market price for apples is $34.00 per box. What is the profit-maximizing quantity for apple growers to produce?boxes. Enter your response as an integer.) At this level of output, profit will be Enter your response rounded to the nearest dollar.) Apple growers will earn positive...
Suppose the market for apples is perfectly competitive. The short-run average total cost and marginal cost of growing apples for an individual grower are illustrated in the figure to the right. 10- 9- Assume that the market price for apples is $5.50 per box. What is the profit-maximizing quantity for apple growers to produce? boxes. (Enter your response as an integer.) 8- C 7- MC co Price (dollars per box) 5- 4- ATC 3- 2- 1 O- 10 90 100...
Business Analytics
Harry's Hardware does a brisk husivess during the yeasr, bun daringCsea sells Christmas trees for a subetanial profit. Unfonurmely,an season ate tnially worthicss. Thus. ihe nubrol urces that an sukdter important decision. The tollowing tahle tevcals the denand ior Chries tees Tan soa DEM AND FOR C RISTMAS TREES PROBABLITY 123 130 173 200 0.2 0.3 0.2 04)5 Harry sells trees tor $15 cach, but his cust is only S6 a How mary trees should Hary (b) If...
The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a perfectly competitive firm that produces novelty ear buds in a competitive market. The market price of ear buds is $6.00 per pair. Buddies Production Costs Quantity MC ATC of Ear Buds ($) ($) 10 3.5 15 2 2.44 2.86 3.56 4.02 3.17 5.48 3.5 40 5.98 3.81 45 8.49 4.33 20 25 35 Instructions: In part a, enter your answer as the closest...
The table below shows the weekly marginal cost (MC) and average
total cost (ATC) for Buddies, a perfectly competitive firm that
produces novelty ear buds in a competitive market. The market price
of ear buds is $6.00 per pair.Buddies Production CostsQuantity of Ear BudsMCATC($)($)5-81025152.454.15203.5542544305.54.253564.5408.55Instructions: In part a, enter your answer as
the closest given whole number.a. If Buddies wants to maximize its profits, how many pairs of
ear buds should it produce?_______ pairsInstructions: In parts b-d, round your answers
to...
3. Consider a firm in a perfectly competitive industry with a cost structure as shown in the table below. (a) If the market price is $360, will the firm produce at all? (b) If so, how much and why that particular quantity? (c) Calculate the economic profit or loss at the optimal level of output. Clearly show any calculations performed and explain reasoning used to arrive at your answers. AFC Output 0 AVC ATC MC Your answers 1 (a) 2...
A firm produces a product in a competitive industry and has a total cost function (TC) of TC(a) 60+4q+2q2 and a marginal cost function (MC) of MC(q) = 4 + 4q. At the given market price (P) of $20, the firm is producing 4.00 units of output. Is the firm maximizing profit?V What quantity of output should the firm produce in the long run? The firm should produce unit(s) of output. (Enter your response as an integer.)
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