a) 49 b) 84 c) 133 d) 203 Suppose the U.S. bicycle market is perfectly competitive....
Suppose the U.S. bicycle market is perfectly competitive. The graph below shows the short run cost curves of Ted's bicycle store. Suppose the market price is $29. Is Ted making an economic profit in the short run? Are the profits sustainable in the long run assuming this is a constant cost industry? Briefly explain. MC ATC AVC 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13...
Suppose the U.S. bicycle market is perfectly competitive. The graph below shows the short run cost curves of Ted's bicycle store. Suppose the market price is $13. Should Ted shut down his store in the short run? Briefly explain. MC ATC AVC 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 $/Q AFC OPN 0 1 2...
Suppose the U.S. bicycle market is perfectly competitive. The graph below shows the short run cost curves of Ted's bicycle store. Suppose the market price is $13. Should Ted shut down his store in the short run? Briefly explain. MC ATC AVC 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 $/Q AFC 1 0...
Suppose the U.S. bicycle market is perfectly competitive. The graph below shows the short run cost curves of Ted’s bicycle store. Suppose the market price is $29. Is Ted making an economic profit in the short run? Are the profits sustainable in the long run assuming this is a constant cost industry? Briefly explain. MC ATC AVC O/$ 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13...
Suppose there are 100 identical firms in the market and the luggage industry is perfectly competitive. What does the market supply curve look like? 20 19 18 17 16 15 14 13 12 11 A 10 9 8 7 6 5 4 20 19 18 17 16 15 14 13 12 11 A 10 8 7 6 2 1 0 0 0 1 2 3 4 5 6 7 8 9 10 11 12 0 1 2 3 4 5...
6. Short-run perfectly competitive equilibrium Consider a perfectly competitive market for wheat in Philadelphia. There are 80 firms in the industry, each of which has the cost curves shown on the following graph: MC ATC COST (Cents per bushel) AVC 0 5 10 15 20 25 30 35 40 45 50 Demand Supply Curve Equilibrium PRICE (Cents per bushel) 0 400 800 1200 1600 2000 2400 2800 3200 3600 4000 QUANTITY OF OUTPUT (Thousands of bushels) in the short run....
Sonya and Leah operate a small firm in a perfectly competitive market, the diagram illustrates its MC, ATC, AVC and MR curves. 1. What is their current average revenue per unit? 2. What is their profit maximizing level of output and profit? 3. If the market clearing price drops to $10.00 per unit, should they continue to produce in the short run if they wish to maximize their economic profits (or minimize its economic losses)? Explain. 4. What is their...
For a perfectly competitive market made up of firms represented in the graph below, what is the long run equilibrium price of the good? Cost ($) 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....
show all steps and formulas VC A product in a perfectly competitive market is $6. Assume the firm is subject to the following outputs and cost MR= TC MC= ATC Profit/Loss ATR/AQ ATR/AQ 200 250 12.5 -130 399 500 600 700 850 158 1000 191 1200 16 219 1700 7.76 II. Complete the table Plot the demand, MR, ATC and MC curves on a graph. Identify the profit maximizing output and price. Is this firm maximizing profits? Explain Can this...
QUESTION 13 Suppose a firm operating in a perfectly competitive market has the following cost curves: Firms will be encouraged to enter this market for all prices that exceed Figure 14-6 Suppose a firm operating in a competitive market has the following cost curves Price : МC ATC AVC PS P4 P3 Quantity Q3 Q4 Q2 Q1 A. P1 В. р2 ОС. Р3 D None of the above is correct