Q26
Answer
Option 2
the firm produces at MC=P
where
Q=Qo and P=Po where P=ATC so the TR=TC and profit is zero.
===
Q28
Answer
Option 2
the firm produces at MR=MC
where
Q=H
and the firm charge price from the demand curve at the output level
so P=D
ATC=B
Profit=(P-ATC)*Q
=(D-B)*H
=area BDEG
Question 26 5 pts Price ATC MC AVC DD . m 0 Quantity Refer to the...
Price ATC MC AVC Qo DD Лuanth Refer to the diagram above. At the point marked m. O price is determining production at a level where P = MC. TR is exactly equal to TC, so profits equal zero. O price is above average cost of production. e the leftover rectangle is the profit earned. mic_8_50.jpg Download attachment JPG 6 7 8 9 10
QUESTION 39 Price and cost MC ATC AVC N O P MR Demand RSTU Quantity (per period) The figure above shows different curves for a short-run monopolist. What is the profit-maximizing quantity level? OQ OR Os От Ου
QUESTION 6 Price, ATC, AVC and MC (per unit) M P4 P P2 P 91 92 93 94 Os Quantity (per period) Based on the graph above, what is the curve for the perfectly competitive market? O MC O AVC MR 0 0 O ATC
Question 8 (Mandatory) (5 points) MC ATC AVC 13 MR Price 00 6 4 0 10 15 28 31 20 Quantity Reference: Ref 24-3 In the figure above, to maximize profits or minimize losses the firm should produce units. OA) 15 B) 20 C) 28 OD 10 Question 11 (Mandatory) (5 points) MC ATC AVC 13- MR Price 9 8 A 0 4 10 15 28 20 Quantity Reference: Ref 24-3 In the figure above, the firm A) could make...
The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a monopoly are shown in the figure below. The figure also shows the demand curve (D) and the marginal revenue curve (MR) for this market. Instructions: Use the tools provided to plot the profit-maximizing quantity (Q), the profit-maximizing price (P), the profit (Profit), and the deadweight loss (DWL). Note that the deadweight loss will be only approximate due to the curvature of the marginal cost curve....
MC ATC MR L M QUANTITY 1. Use Figure 40.1 to answer these questions. (A) At what level of output will this firm operate? (B) What is marginal revenue at this level of output? (C) What price will this firm charge for its product? (D) The area of which rectangle is equal to total revenue? (E) What is the firm's average total cost? (F) The area of which rectangle is equal to the firm's total cost? (G) Is the firm...
Please answer both of the following questions: Price мC ATC AVC В A Quantity/Week Refer to the above figure. The competitive firm's short run supply curve starts at B and goes along the ATC curve as quantity increases. starts at B and goes along the MC curve as quantity increases. starts at A and goes along the AVC curve as quantity increases. starts at A and goes along the MC curve as quantity increases. QUESTION 14 A market structure in...
Price/Cost ($) 7) Monopoly II (6 points) The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a monopoly are shown in the figure below. The figure also shows the demand curve (D) and the marginal revenue curve (MR) for this market. 501 ATC AVC a. What is the firm's profit-maximizing level of output? Label this on the graph. b. What price will the monopolist charge for that level of output? Label this on the graph....
MC ATC S AVC MR P 0 0 Q Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates The predicted long run adjustments in this industry might be offset by a decline in product demand an increase in resource prices a technological improvement in production methods O entry of new firms into the industry O O O O P MC ATC D MR 0 Refer to the accompanying...
2. Consider the following exph (10 marks) Zoom ATC Ne The graph above shows the demand curve (D), marginal cost curve (MC), average cout exurve (AC), and marginal revenue curve (MR) for a monopolist. a) What is the profit maximizing quantity and price for the monopolist? Answer b) If this is a perfectly competitive market, what is the equilibrium quantity and price? Answer: c) What area represents the deadweight loss caused by the monopolist? Answer: