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Page 22 of 2 Question 22 (1 point) Serenity owns a factory that makes and sell...
Serenity owns a factory that makes and sell microwaves. The market price of microwaves is $150...
Serenity owns a factory that makes and sell microwaves. The market price of microwaves is $150 per microwave. At the factory's profit maximizing level of output the average variable cost to produce microwaves is $125 and the average total cost is $175. What should Serenity do to maximize her profit? Keep operating in the short run but shut down in the long run Shut down in the short run but keep operating in the long run Shut down in the...
4. Suppose a factory produces inter-lock paving blocks for sale, which requires a building and a...
4. Suppose a factory produces inter-lock paving blocks for sale, which requires a building and a machine that produces blocks. A firm rents a building for Rs. 50,000 per month and rents a machine for Rs. 30,000 a month. Those are his fixed costs. His variable cost per month is given in the table below. Quantity of Blocks Variable cost (Rs.) 0 1000 5000 2000 8000 3000 10000 4000 14000 5000 19000 6000 27000 7000 40000 8000 60000 9000 90000...
Question 13 1 pts You run a ginger beer factory. Market research suggests a price of...
Question 13 1 pts You run a ginger beer factory. Market research suggests a price of $8/bottle will produce the highest revenue. You run production with this level of operating leverage. B: Fixed cost - 500 per month, Variable cost = $2/bottle Now, a new competing firm enters the market, pricing their ginger beer at $4 per bottle. You can sell as much as you like at that price but can no longer sell any at the higher price what...
Question 4: Novotel Lotus provides catered meals, and the catered meals industry is perfectly competitive. Novotel...
Question 4: Novotel Lotus provides catered meals, and the catered meals industry is perfectly competitive. Novotel Lotus machinery costs $100 per day and is the only fixed input. The firm's variable cost consists of the wages paid to the cooks and the food ingredients. The variable cost per day associated with each level of output is given in the accompanying table. Quantity of meals VC TC MC AVC ATC $200 $300 $480 $700 $1000 4.1. Calculate the total cost, the...
Exhibit 12-2 Short Run Morginal Cost Average $105---- Total $88------ Cost Average Variable $55 - Cost...
Exhibit 12-2 Short Run Morginal Cost Average $105---- Total $88------ Cost Average Variable $55 - Cost 460 1675 600 Refer to Exhibit 12-2. Suppose the market price equals $88 and the firm is currently producing 600 units of output. In this situation, the firm: is maximizing profit. should increase production of output in order to maximize profit. should decrease production of output in order to maximize profit. should shut down in order to minimize economic losses.
Which of the following is a characteristic of pure monopoly? Question 2 Describe the characteristics of...
Which of the following is a characteristic of pure monopoly? Question 2 Describe the characteristics of the long-run equilibrium for a perfectly competitive firm. Assume a purely competitive firm is selling 200 units of output at $3 each. At this output, its total fixed cost is $100 and its total variable cost is $350. This firm is making a profit, but not necessarily the maximum profit. is maximizing its profit. is incurring losses. should shut down in the short run....
all the information is on the graph 15:08 Attachment Done 1 of 8 1. Use the information in Figure A above to answe...
all
the information is on the graph
15:08 Attachment Done 1 of 8 1. Use the information in Figure A above to answer the following questions The Exit Price b. The Shut Down Price c Assume the market price is $14 fthe firm chooses the profit maximizing output level, the firm wll ncur a Proficincur a Loss/break d. the fms Prof or Loss equals even Show your work the fim shuts down, the frm will inor a Profincur a Loss/break...
2. A profit-maximizing business incurs an economic loss of S30,000 per month. Its fixed cost is...
2. A profit-maximizing business incurs an economic loss of S30,000 per month. Its fixed cost is S20,000 per month. a) Should this firm produce or shut down in the short run? Explain. Should it stay in the industry or exit in the long run? Explain. b) Suppose instead that this business has a fixed cost of S35,000 per month. Should it produce or shut down in the short run? Explain. Should it stay in the industry or exit in the...
For the first drop down "Based on what you know of the relationship between short-run and...
For the first drop down "Based on what you know of the
relationship between short-run and long-run costs, the firm's long
run average cost curve will look most like (LRAC1 /OR/ LRAC2) on
the graph below"
For the last part Short Run / Long Run
Economic Profit Positive / negative OR zero
Action Produce Exit OR Shutdown
Thank you!!
1. Shut down versus exit prices in the short and long run Aa Aa The graph below represents the marginal cost...
Consider the competitive market for dress shirts. The following graph shows the marginal cost (MC), average...
Consider the competitive market for dress shirts. The following
graph shows the marginal cost (MC), average total cost (ATC), and
average variable cost (AVC) curves for a typical firm in the
industry.
On the following graph, use the orange points (square
symbol) to plot points along the portion of the
firm's short-run supply curve that corresponds to
prices where there is positive output. (Note: You
are given more points to plot than you need.)
At the current short-run market price,...
Serenity owns a factory that makes and sell microwaves. The market price of microwaves is $150 per microwave. At the factory's profit maximizing level of output the average variable cost to produce microwaves is $125 and the average total cost is $175. What should Serenity do to maximize her profit? Keep operating in the short run but shut down in the long run Shut down in the short run but keep operating in the long run Shut down in the...
4. Suppose a factory produces inter-lock paving blocks for sale, which requires a building and a machine that produces blocks. A firm rents a building for Rs. 50,000 per month and rents a machine for Rs. 30,000 a month. Those are his fixed costs. His variable cost per month is given in the table below. Quantity of Blocks Variable cost (Rs.) 0 1000 5000 2000 8000 3000 10000 4000 14000 5000 19000 6000 27000 7000 40000 8000 60000 9000 90000...
Question 13 1 pts You run a ginger beer factory. Market research suggests a price of $8/bottle will produce the highest revenue. You run production with this level of operating leverage. B: Fixed cost - 500 per month, Variable cost = $2/bottle Now, a new competing firm enters the market, pricing their ginger beer at $4 per bottle. You can sell as much as you like at that price but can no longer sell any at the higher price what...
Question 4: Novotel Lotus provides catered meals, and the catered meals industry is perfectly competitive. Novotel Lotus machinery costs $100 per day and is the only fixed input. The firm's variable cost consists of the wages paid to the cooks and the food ingredients. The variable cost per day associated with each level of output is given in the accompanying table. Quantity of meals VC TC MC AVC ATC $200 $300 $480 $700 $1000 4.1. Calculate the total cost, the...
Exhibit 12-2 Short Run Morginal Cost Average $105---- Total $88------ Cost Average Variable $55 - Cost 460 1675 600 Refer to Exhibit 12-2. Suppose the market price equals $88 and the firm is currently producing 600 units of output. In this situation, the firm: is maximizing profit. should increase production of output in order to maximize profit. should decrease production of output in order to maximize profit. should shut down in order to minimize economic losses.
all
the information is on the graph
15:08 Attachment Done 1 of 8 1. Use the information in Figure A above to answer the following questions The Exit Price b. The Shut Down Price c Assume the market price is $14 fthe firm chooses the profit maximizing output level, the firm wll ncur a Proficincur a Loss/break d. the fms Prof or Loss equals even Show your work the fim shuts down, the frm will inor a Profincur a Loss/break...
2. A profit-maximizing business incurs an economic loss of S30,000 per month. Its fixed cost is S20,000 per month. a) Should this firm produce or shut down in the short run? Explain. Should it stay in the industry or exit in the long run? Explain. b) Suppose instead that this business has a fixed cost of S35,000 per month. Should it produce or shut down in the short run? Explain. Should it stay in the industry or exit in the...
For the first drop down "Based on what you know of the
relationship between short-run and long-run costs, the firm's long
run average cost curve will look most like (LRAC1 /OR/ LRAC2) on
the graph below"
For the last part Short Run / Long Run
Economic Profit Positive / negative OR zero
Action Produce Exit OR Shutdown
Thank you!!
1. Shut down versus exit prices in the short and long run Aa Aa The graph below represents the marginal cost...
Consider the competitive market for dress shirts. The following
graph shows the marginal cost (MC), average total cost (ATC), and
average variable cost (AVC) curves for a typical firm in the
industry.
On the following graph, use the orange points (square
symbol) to plot points along the portion of the
firm's short-run supply curve that corresponds to
prices where there is positive output. (Note: You
are given more points to plot than you need.)
At the current short-run market price,...
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