Answer
Option 1
$10
the long-run equilibrium price is the minimum average total cost
as the firm faces zero economic profit in the long and produces at
MC=ATC
where
P=MC=ATC=$10
Question 20 (1 point) $20 $18 $16 ATC MC $14 $12 Cost of Sweatpants $10 $8...
$20 $18 ATC MC $16 $14 $ $12 Cost of Sweatpants $10 $8 AVC $6 $4 $2. $0 7 Cost Curves Sweatpants Firm 1 2 10 O 3 4 5 6 7 8 9 Quantity of Sweatpants The above graph contains the average total cost, marginal cost, and average variable cost for a small firm that produces sweatpants. Assume the market for sweatpants is perfectly competitive and all sweatpants firms have the same costs. What is the long-run equilibrium price...
Question 26 (1 point) THI MC $12 $11 $10 $9 $8 $7 $6 ATC Cost of Flashlights AVC $3 $2 $1 $0 0 1 2 8 9 10 3 4 5 6 7 Quantity of Flashlights The above graph shows the average total cost (ATC) marginal cost (MC) and average variable cost (AVC) for a flashlight producer. What is this producer's fixed costs? The above graph shows the average total cost (ATC) marginal cost (MC) and average variable cost (AVC)...
MC ATC Cost of Flashlights $12 $11 $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 0 1 AVC 2 3 4 5 6 7 8 9 10 Quantity of Flashlights The above graph shows the average total cost (ATC) marginal cost (MC) and average variable cost (AVC) for a flashlight producer. What is this producer's fixed costs? $7 $10 $13 $5 $
$14 $13 $12 MC $11 $10 MR $9 ATC $8 Price of Hats $7 AVC $6 $5 $4 $3 $2 $1 $0 0 1 2. 3 4 5 6 7 8 9 10 Quantity of Hats The graph above show information about costs and revenue for a small hat factory in a perfectly competitive market. How much profit does the hat factory make? $16 $12 $8 $10
$14 $13 MC 1 $12 $11 MC 2 $10 $9 $8 Marginal Cost of Hoodies $7 $6 $5 $4 $3 $2. $1 so $0 0 100 200 300 400 500 600 700 800 900 1000 Quantity of Hoodies The above graph shows two possible marginal cost curves for the production of hoodies (hooded sweatshirts). Assume the market for hoodies is perfectly competitive. If a hoodie industry consists of 20 firms with a marginal cost curve of MC 1 and 10...
$40 MC $64 $36 Demand $56 $32 ATC $28 $48 $24 $40 Cost of Webcam $20 Price of Webcam $16 $12 $24 AVC $16 $8 $4 $8 Supply $0 $0 0 1 2 8 9 10 3 4 5 6 7 Quantity of Webcams 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 Quantity of Webcams Assume the perfectly competitive webcam industry in this question is made up of identical firms. The graph on...
Output Total Cost Fixed Cost Variable Cost AFC AVC ATC MC 0 50 1 130 2 190 3 230 4 250 5 310 6 400 7 540 8 800 9 1200 The market supply curve is the sum of the marginal cost curves of all the firms in the market. The market supply of a competitive industry is determined by:
MC ATC Cost ($ per unit) ONWA0BB 9 10 Quantity The figure above gives the marginal cost (MC) and average total cost (ATC) curves for a firm operating in a perfectly competitive market with a market price of $7. Use this figure to answer the questions below. a. What is the profit maximizing quantity of output? b. When profit is maximized, what is the economic profit?
42 MC ATC 32 AVC 24 18 14 I0 AFC Quantity 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10 1. The accompanying graph (top of next page) summarizes the demand and costs for a firm that operates in a perfectly competitive market. a. What level of output should this firm produce in the short run? b. What price should this firm charge in the short run? c....
D Question 7 1 pts Use the following graph that shows the marginal cost (MC) curve, the Average Variable Cost (AVC) curve, and the Average Total Cost (ATC) curve. What is the variable cost when the quantity (Q) being produced is 6? P MC ATC /AVC $15 $11 $8 Q O $66 $8 O $15 $11 Question 8 1 pts Use the following graph that shows the marginal cost (MC) curve, the Average Variable Cost (AVC) curve, and the Average...