1. Use the figure below to answer the following true/false
questions (Explain why the answer is true or false): e. Total fixed
costs for this firm are roughly $100. f. If market price is $15,
the firm sells 80 units and makes a normal profit. What is the
output that maximizes the firm’s profit?
Homework Answers
(e) False.
Total fixed costs for this firm are roughly $240
From the figure, ATC for 80 units = $15. Thus, total cost = 80*15 = $1200
and AVC for 80 units is roughly around $12. Thus, total variable cost = 80*12 = $960
Fixed cost = Total cost - total variable cost = $240
(f) True.As total revenue is equal to total cost for a market price of $15 and output of 80 units.
The firm's profit is maximized for output of 60 units where MC=AVC
Add Answer to:
1. Use the figure below to answer the following true/false
questions (Explain why the answer is...
Up to which level of output will the firm experience increasing marginal returns? Explain why there...
Up
to which level of output will the firm experience increasing
marginal returns? Explain why there are increasing marginal
returns. (4 marks)
Εοιιυιι ο (ο μυιΠιο) και ναντι Ise the figure below and answer bo MC ATC AVC Cost (dollars per gallon) 0 10 20 30 40 50 60 70 80 90 100 Quantity Igallons of ice cream per hour) Paragraph
MC ATC AVC ------- ------- ------- 1 'If the market price is $82, how much will...
MC ATC AVC ------- ------- ------- 1 'If the market price is $82, how much will the firm produce to maximize profit? What is the profit? $50 $150 $50 40 95.00 45.00 30 73.33 40.00 40 65.00 40.00 50 62.00 42.00 60 61.67 45.00 70 62.86 48.57 80 65.00 52.50 90 67.78 56.67 100 71.00 61.00 Click in the profit 8 Q MC ATC AVC ------- ------ ------- If the market price is $52, how much will the firm produce...
Answer the following true or false questions below: a) A firm will produce if P <...
Answer the following true or false questions below: a) A firm will produce if P < AVC. (true or false) b) When P > AVC, the firm will produce in the short run at the quantity where P(=MR) is equal to its increasing MC. (true or false) c) The MC curve above the AVC curve is the firm's short-run supply curve. (true or false)
Question 2 10 pts Use the following graph to answer the next question. MC ATC AVC...
Question 2 10 pts Use the following graph to answer the next question. MC ATC AVC Costs and Revenues 1.25 1.05 .90 .80 .65 .60 0 20 15 35 Quantity The graph shows the cost curves for a perfectly competitive firm. If the market price of the product is $1.25 per unit, then the firm will earn how much profit per unit in the short run? $.60 $1.25 $.65 o $.45
Consider the perfectly competitive market for halogen ceiling lamps. The following graph shows the marginal cost...
Consider the perfectly competitive market for halogen ceiling lamps. 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. COSTS (Dollars per tamp) 100 MC 90 80 70 60 50 ATC AVC 40 30 20 10 0 5 10 15 20 25 30 35 40 45 50 QUANTITY OF OUTPUT (Thousands of lamps) For each price in the following table, use the graph to determine...
Refer to the figure below. If the firm is producing the level of output that maximizes profit, its total variable c...
Refer to the figure below. If the firm is producing the level of output that maximizes profit, its total variable cost of production is: Price (s) MC1 Fatci AVC NA MRID 10 20 30 40 50 60 70 80 90 Quantity $240 $420 $360 $160
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. 100 T 90 80 70 60 e 50 8 40 30 20 10 ATC AVC 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of shirts)
4 Assume that a purely competitive firm has the schedule of the average and marginal costs...
4 Assume that a purely competitive firm has the schedule of the average and marginal costs given in the table below ------------------------------------------------------- OUTPUT AFC AVC ATC MC -------------------------------------------------------- 1 $300 $100 $400 $100 2 150 75 225 50 3 100 70 170 60 4 75 73 148 80 5 60 80 140 110 6 50 90 140 140 7 43 103 146 180 8 38 119 156 230 --------------------------------------------------------- a. At a price of $68, the firm will produce _____...
Use the following graph to answer the next question. MC ATC AVC Costs and Revenues 1.25...
Use the following graph to answer the next question. MC ATC AVC Costs and Revenues 1.25 1.05 .90 .80 .65 .60 o 15 20 35 Quantity The graph shows the cost curves for a perfectly competitive firm. If the market price of the product is $1.25 per unit, then the firm will earn how much profit per unit in the short run? O $.65 O $1.25 O $.45 O $.60
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions:...
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions: TR = 10Q TC = 2 + 2Q + Q2 MC = 2 + 2Q At the level of output maximizing profit , the above firm's level of economic profit is A) $0 B) $4 C) $6 D) $8 *Additional information after I did the math: The price this firm charges for its product is $10, the level of output maximizing profit is 4...
Up
to which level of output will the firm experience increasing
marginal returns? Explain why there are increasing marginal
returns. (4 marks)
Εοιιυιι ο (ο μυιΠιο) και ναντι Ise the figure below and answer bo MC ATC AVC Cost (dollars per gallon) 0 10 20 30 40 50 60 70 80 90 100 Quantity Igallons of ice cream per hour) Paragraph
MC ATC AVC ------- ------- ------- 1 'If the market price is $82, how much will the firm produce to maximize profit? What is the profit? $50 $150 $50 40 95.00 45.00 30 73.33 40.00 40 65.00 40.00 50 62.00 42.00 60 61.67 45.00 70 62.86 48.57 80 65.00 52.50 90 67.78 56.67 100 71.00 61.00 Click in the profit 8 Q MC ATC AVC ------- ------ ------- If the market price is $52, how much will the firm produce...
Question 2 10 pts Use the following graph to answer the next question. MC ATC AVC Costs and Revenues 1.25 1.05 .90 .80 .65 .60 0 20 15 35 Quantity The graph shows the cost curves for a perfectly competitive firm. If the market price of the product is $1.25 per unit, then the firm will earn how much profit per unit in the short run? $.60 $1.25 $.65 o $.45
Consider the perfectly competitive market for halogen ceiling lamps. 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. COSTS (Dollars per tamp) 100 MC 90 80 70 60 50 ATC AVC 40 30 20 10 0 5 10 15 20 25 30 35 40 45 50 QUANTITY OF OUTPUT (Thousands of lamps) For each price in the following table, use the graph to determine...
Refer to the figure below. If the firm is producing the level of output that maximizes profit, its total variable cost of production is: Price (s) MC1 Fatci AVC NA MRID 10 20 30 40 50 60 70 80 90 Quantity $240 $420 $360 $160
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. 100 T 90 80 70 60 e 50 8 40 30 20 10 ATC AVC 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of shirts)
Use the following graph to answer the next question. MC ATC AVC Costs and Revenues 1.25 1.05 .90 .80 .65 .60 o 15 20 35 Quantity The graph shows the cost curves for a perfectly competitive firm. If the market price of the product is $1.25 per unit, then the firm will earn how much profit per unit in the short run? O $.65 O $1.25 O $.45 O $.60
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