Homework Answers
When the price is higher than the average cost, a firm is making profits. When the price is equal to or higher than the average variable cost then it is covering the average cost but bot the fixed costs, in this case, the firm is making normal profits. In the third case when the price goes below the average variable costs, then the firm must shut down.
Here, at a price equal to $0.70, the corresponding the average total cost is higher implying that the fixed costs are not being recovered by this price. But since the firm is making normal profits, then it must continue producing.
Add Answer to:
(Figure: Interpreting Short-Run Cost Curves) Given the information from the figure, if price equals $0.70, the...
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....
18. In a perfectly competitive market, individual firms set: A) prices and quantities B) neither prices...
18. In a perfectly competitive market, individual firms set: A) prices and quantities B) neither prices nor quantities. C) quantiies but not prices D) prices but not quantities 19. The perfectly competitive firm faces a perfectly elastic demand curve because A) t has the ability to set the price and force everyone to buy at that price. it has no ability to control price. B) C) t doesn't; it faces a perfectly inelastic demand curve D) it doesn't; everyone knows...
PLEASE HELP! 42. (Pigure: Interpreting MC and Price Curves) The marginal cost of producing the fifty-seventh...
PLEASE HELP!
42. (Pigure: Interpreting MC and Price Curves) The marginal cost of producing the fifty-seventh unit is: 75 MC 60 PRICE 50 21 31 40 10 20 30 40 50 60 A) $50 B) $73 C) $95 D) $150 43, (Figure: Determining Long.Run Adjustments) The figure depicts the cost curves for a firm in a perfectly competitive industry in the long run. If the market price is $36, how many units of output should this firm produce? ATC MC...
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5...
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5 5 8 10 13 17 d) (3 points) At a market price of $11, what is the firm's short run profit max- imizing output? e) (3 points) At a market price of $11, is the firm earning positive, negative, or zero economic profit? f) (3 points) At a market price of $11, is the market in a long run equilibrium? Why of Why not?
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5...
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5 1 1 1 ! сл 8 10 13 17 Q Use figure 2, which depicts the cost curves of a perfectly competitive firm to answer the following a)(3 points) When the market prices is $8, what is the firm's short run profit maximizing output? b) (3 points)At a market price of $8, is the firm earning positive, negative, or zero economic profit? c) (3...
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5...
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5 5 8 10 13 17 g) (3 points) Calculate the economic profit of this firm when the market price is $15
Question 27 Figure: Determining Short-Run Supply Curves Price and Cost (5) ATC AVC BLI 2 3...
Question 27 Figure: Determining Short-Run Supply Curves Price and Cost (5) ATC AVC BLI 2 3 5 4 Output Reference: Ref 8-8 (Figure: Determining Short-Run Supply Curves) Which segment represents the short-run supply curve? A. AE ОВ. ВЕ OC. DE D. CE
Each graph illustrates three short-run cost curves for firms, where ATC is average total cost (also...
Each graph illustrates three short-run cost curves for firms, where ATC is average total cost (also referred to as average cost), MC is marginal cost, and AVC is average variable cost. Please classify each of the graphs as valid or invalid based on what you know about the relationships between these curves. Valid Invalid Answer Bank Graph A Graph F Graph E MC MC MC AVC AVC Cost Cost ATC ATC ATC AVC Output Output Output Graph C Graph D...
Firm B’s short-run cost function is: C = 12 - 2q + 3q2 + F Find...
Firm B’s short-run cost function is:
C = 12 - 2q + 3q2 + F Find the following: A. AFC B. AVC C. ATC D. MC E. At what output quantity is average total cost (ATC) minimized? Assume F = 63. F. At what output quantity does the MC curve cross the ATC and AVC curves? Assume F = 63 G. Graph the AFC, AVC, ATC and MC curves. Assume F = 63.
Figure 14-6 Suppose a firm operating in a competitive market has the following cost curves: Price...
Figure 14-6 Suppose a firm operating in a competitive market has the following cost curves: Price MC ATC AVC PS P4 P3 B1 Q1 02 Q3 04 Paarip Refer to Figure 14-6. Firms will shut down in the short run if the market price a. exceeds P3. b. is less than P1. c. is greater than P1 but less than P3. O d. exceeds P2. சிவவடானே 59 30 ...
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....
18. In a perfectly competitive market, individual firms set: A) prices and quantities B) neither prices nor quantities. C) quantiies but not prices D) prices but not quantities 19. The perfectly competitive firm faces a perfectly elastic demand curve because A) t has the ability to set the price and force everyone to buy at that price. it has no ability to control price. B) C) t doesn't; it faces a perfectly inelastic demand curve D) it doesn't; everyone knows...
PLEASE HELP!
42. (Pigure: Interpreting MC and Price Curves) The marginal cost of producing the fifty-seventh unit is: 75 MC 60 PRICE 50 21 31 40 10 20 30 40 50 60 A) $50 B) $73 C) $95 D) $150 43, (Figure: Determining Long.Run Adjustments) The figure depicts the cost curves for a firm in a perfectly competitive industry in the long run. If the market price is $36, how many units of output should this firm produce? ATC MC...
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5 5 8 10 13 17 d) (3 points) At a market price of $11, what is the firm's short run profit max- imizing output? e) (3 points) At a market price of $11, is the firm earning positive, negative, or zero economic profit? f) (3 points) At a market price of $11, is the market in a long run equilibrium? Why of Why not?
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5 1 1 1 ! сл 8 10 13 17 Q Use figure 2, which depicts the cost curves of a perfectly competitive firm to answer the following a)(3 points) When the market prices is $8, what is the firm's short run profit maximizing output? b) (3 points)At a market price of $8, is the firm earning positive, negative, or zero economic profit? c) (3...
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5 5 8 10 13 17 g) (3 points) Calculate the economic profit of this firm when the market price is $15
Question 27 Figure: Determining Short-Run Supply Curves Price and Cost (5) ATC AVC BLI 2 3 5 4 Output Reference: Ref 8-8 (Figure: Determining Short-Run Supply Curves) Which segment represents the short-run supply curve? A. AE ОВ. ВЕ OC. DE D. CE
Each graph illustrates three short-run cost curves for firms, where ATC is average total cost (also referred to as average cost), MC is marginal cost, and AVC is average variable cost. Please classify each of the graphs as valid or invalid based on what you know about the relationships between these curves. Valid Invalid Answer Bank Graph A Graph F Graph E MC MC MC AVC AVC Cost Cost ATC ATC ATC AVC Output Output Output Graph C Graph D...
Firm B’s short-run cost function is:
C = 12 - 2q + 3q2 + F Find the following: A. AFC B. AVC C. ATC D. MC E. At what output quantity is average total cost (ATC) minimized? Assume F = 63. F. At what output quantity does the MC curve cross the ATC and AVC curves? Assume F = 63 G. Graph the AFC, AVC, ATC and MC curves. Assume F = 63.
Figure 14-6 Suppose a firm operating in a competitive market has the following cost curves: Price MC ATC AVC PS P4 P3 B1 Q1 02 Q3 04 Paarip Refer to Figure 14-6. Firms will shut down in the short run if the market price a. exceeds P3. b. is less than P1. c. is greater than P1 but less than P3. O d. exceeds P2. சிவவடானே 59 30 ...
Most questions answered within 3 hours.
-
If for a test the P-value is between 0.0025 and 0.005, what
conclusion can you draw?...
asked 3 minutes ago -
Using Python. Write a function clean2(aList) that takes a list
of integers aList as argument, and...
asked 8 minutes ago -
Intrapreneurship is defined as the
development of an enterprise culture with an existing (Nandan,
2009). An...
asked 22 minutes ago -
QUESTION 1 Tamiflu is a drug used to treat influenza. A study
found that Tamiflu reduced...
asked 26 minutes ago -
Which of the following would be less likely to be used to
allocate factory overhead when...
asked 32 minutes ago -
Transverse pulses travel with a speed of 195 m/s along a taut
copper wire whose diameter...
asked 31 minutes ago -
Sampling for Engineers Homework question 11.51
Suppose that Y1;Y2;Y3;Y4 denote a random sample from a
Poisson(θ)...
asked 34 minutes ago -
Which of the following is cleaved by regulated intramembrane
proteolysis (RIP)? Select any/all answers that apply....
asked 33 minutes ago -
Random characters You decide to create a program characters.py
that fills a two-dimensional list with random...
asked 46 minutes ago -
What are the major sources of error in your determination of the
molar mass? Select all...
asked 49 minutes ago -
A. Suppose your manager indicates that for a normally
distributed data set you are analyzing, your...
asked 1 hour ago -
During the month of August, the average temperature of a lake
next to a local college...
asked 52 minutes ago