Homework Answers
Ans. For this perfectly competitive firm, the profit-maximizing output level is P = MR = MC = $600 per unit of output
At this level, the optimal output is, Q = 6 units of output and at this output level, ATC = $1,000, then
Profit = TR - TC
= P x Q - ATC x Q
= ( P - ATC ) x Q
= ( 600 - 1000) x 6
= - $ 2,400
Since, ATC> P, therefore this perfectly competitive firm will have economic loss of $2,400 at the profit maximizing output level.
Add Answer to:
The graph presents the costs and revenue for a perfectly (purely) competitive firm, where the market...
The graph presents the short-run costs and revenue for a monopolistically competitive firm. Use this information...
The graph presents the short-run costs and revenue for a monopolistically competitive firm. Use this information to determine the profit-maximizing output and profit for this firm in the short run Cost and revenue $800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 Average total cost Marginal cost What is the profit-maximizing output of this monopolistically competitive firm? Round your answer to the nearest whole number units of output Demand What is the maximum...
Take a look at the statements below about a purely (or perfectly) competitive market. Indicate whether...
Take a look at the statements below about a purely (or perfectly) competitive market. Indicate whether each statement is true or false by moving the true or false labels to the appropriate boxes. 1. In general, the market demand curve in a purely competitive market is perfectly elastic. False True 2. In general, an individual firm in a purely competitive market faces a perfectly elastic demand curve. 3. An individual firm in a purely competitive market can obtain a higher...
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...
Assume that a firm is operating in a perfectly competitive market at its shut-down level of...
Assume that a firm is operating in a perfectly competitive market at its shut-down level of output. Which of the following statements is false? Marginal cost and average revenue are equal Marginal cost and average variable cost are equal Marginal cost and marginal revenue are equal none of the options
Exercise 5: Two oligopolistic firms compete in the same market as in Exercise 1 where the...
Exercise 5: Two oligopolistic firms compete in the same market as in Exercise 1 where the demand function is 4800 80p. The two firms can expand their output at a constant marginal and average cost of 305 (1) Fill the second column of table 1 with the values for the market price corresponding to each value of the overall quantity produced in the market. (2) Draw in diagram 1 the marginal cost, the market demand and the marginal revenue at...
A firm operates in a perfectly competitive market with a price of P = 50 for...
A firm operates in a perfectly competitive market with a price of P = 50 for the product. TVC = 0.5Q3 − 18Q2 + 170Q Q (output) TFC = 300. Write an equation expressing the firm’s total revenue (TR) as function of Q. Write an equation expressing the firm’s total cost (TC), as a function of Q. Write an equation expressing the firm’s profit (π), as a function of Q.Find the first-order condition for the firm’s profit-maximization decision. Find the...
The table shows the cost and revenue information for a perfectly (or purely) competitive firm that...
The table shows the cost and revenue information for a perfectly (or purely) competitive firm that produces external hard drives. Use whole numbers to answer the following six questions.
Graph a purely competitive market showing the point of equilibrium at a price of $400 and...
Graph a purely competitive market showing the point of equilibrium at a price of $400 and a total product of 10,000. Next to this graph, graph the purely competitive firm. What price will the firm charge for the product? Show the demand, average revenue, and marginal revenue curve on the graph for the firm. Show the profit maximizing quantity for the firm at 500 units of output, or tp. Show this firm suffering a loss of $10000, making sure to...
Which of the following is true with respect to a perfectly competitive firm? It will make...
Which of the following is true with respect to a perfectly competitive firm? It will make small economic profits always or go out of business A perfectly competitive firm has a perfectly inelastic demand curve At profit maximization the perfectly competitive firm operates where total revenue is maximized as well The perfectly competitive firms supply curve is its marginal cost curve above AVC All of the above are true with respect to a perfectly competitive firm Question 5 1 pts...
Suppose that a perfectly competitive firm faces a market price of $ 12 12 per unit,...
Suppose that a perfectly competitive firm faces a market price of $ 12 12 per unit, and at this price the upward-sloping portion of the firm's marginal cost curve crosses its marginal revenue curve at an output level of 1 comma 800 1,800 units. If the firm produces 1 comma 800 1,800 units, its average variable costs equal $ 7.00 7.00 per unit, and its average fixed costs equal $ 1.00 1.00 per unit. What is the firm's profit-maximizing (or...
The graph presents the short-run costs and revenue for a monopolistically competitive firm. Use this information to determine the profit-maximizing output and profit for this firm in the short run Cost and revenue $800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 Average total cost Marginal cost What is the profit-maximizing output of this monopolistically competitive firm? Round your answer to the nearest whole number units of output Demand What is the maximum...
Take a look at the statements below about a purely (or perfectly) competitive market. Indicate whether each statement is true or false by moving the true or false labels to the appropriate boxes. 1. In general, the market demand curve in a purely competitive market is perfectly elastic. False True 2. In general, an individual firm in a purely competitive market faces a perfectly elastic demand curve. 3. An individual firm in a purely competitive market can obtain a higher...
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...
Assume that a firm is operating in a perfectly competitive market at its shut-down level of output. Which of the following statements is false? Marginal cost and average revenue are equal Marginal cost and average variable cost are equal Marginal cost and marginal revenue are equal none of the options
Exercise 5: Two oligopolistic firms compete in the same market as in Exercise 1 where the demand function is 4800 80p. The two firms can expand their output at a constant marginal and average cost of 305 (1) Fill the second column of table 1 with the values for the market price corresponding to each value of the overall quantity produced in the market. (2) Draw in diagram 1 the marginal cost, the market demand and the marginal revenue at...
The table shows the cost and revenue information for a perfectly (or purely) competitive firm that produces external hard drives. Use whole numbers to answer the following six questions.
Which of the following is true with respect to a perfectly competitive firm? It will make small economic profits always or go out of business A perfectly competitive firm has a perfectly inelastic demand curve At profit maximization the perfectly competitive firm operates where total revenue is maximized as well The perfectly competitive firms supply curve is its marginal cost curve above AVC All of the above are true with respect to a perfectly competitive firm Question 5 1 pts...
Most questions answered within 3 hours.
-
The manager at a car assembly plant believes that the mean
assembly time for a car...
asked 13 minutes ago -
Which of the following is true of electron capture?
A) It decreases the nuclide's mass number...
asked 1 hour ago -
Assuming an efficiency of 43.10%, calculate the actual yield of
magnesium nitrate formed from 114.9 g...
asked 2 hours ago -
The highly pathogenic bacterium Clostridium
perfringens causes gangrene, a disease that results in the
destruction of...
asked 4 hours ago -
In the context of situation analysis, which of the following is
a category for analysis in...
asked 4 hours ago -
In a study of the gas phase decomposition of sulfuryl chloride
at 600 K SO2Cl2(g)SO2(g) +...
asked 4 hours ago -
75 g of 2-propanol (C3H8O) and 25 g of pentane are mixed in a
200 mL...
asked 4 hours ago -
The 2800-turn coil in a dc motor has an area per turn of 1.1 ×
10-2...
asked 4 hours ago -
Draw a combinational logic circuit diagram with a symbol inside
the box for two I/P of...
asked 4 hours ago -
The cliché we use quite a lot in finance is: there is a need to
maximize...
asked 4 hours ago -
In class we discussed the addition of HCl to alpha pinene. Would
you expect one or...
asked 4 hours ago -
I'm trying to explain to my daughter to help her please help
me
I tagged the...
asked 4 hours ago