Homework Answers
In the given graph, profit maximizing firm will produce in the short run but whether it will produce in the long run will be determined by the ATC curve. The ATC is the summation of AFC and AVC. Considering the two given graphs we can safely assume that the firm has ATC well above the persisting or prevailing price. In the long run the firm will SHUT DOWN.
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Question 12 1 pts In the graph below if the price persists at P*, the profit...
all of them Question 1 (1 point) A firm producing a positive output level, covering variable...
all of them
Question 1 (1 point) A firm producing a positive output level, covering variable costs but making a loss in the short run O may nonetheless be doing the nest it can with respect to its profits O should exit the industry O should definitely shut down O is not maximizing profits O should either expand or contract its plant size Question 2 (1 point) The perfectly competitive firm's profits can be calculated as O (MR-ATC)Q O (P-AVC-AFC)Q....
The following graph shows the demand and cost curves for a perfectly competitive firm. The profit-maximizing...
The following graph shows the demand and cost curves for a perfectly competitive firm. The profit-maximizing firm will: MC ATC // AVC Multiple Choice shut down. ο produce with short-run losses. O produce with long-run economic profits. ο produce with short-run economic profits.
Industry Firm SP MC ATC X -P=MR AVC 35.61. .. 10,000 10 16 18 Answer the following question based off of the graphs abo...
Industry Firm SP MC ATC X -P=MR AVC 35.61. .. 10,000 10 16 18 Answer the following question based off of the graphs above, which depict a perfectly competitive industry and firm. Assume that fixed costs (FC) for the firm are $400: Does the firm continue to operate given the information presented in the graph? When would a firm shut down? The firm continues to operate in the short run; A firm would shut down in the short run if...
Let TC = 3000 +100Q -12Q2 + Q3 Assuming the firm operates in a competitive market...
Let TC = 3000 +100Q -12Q2 + Q3 Assuming the firm operates in a competitive market (MR=MC=P): Solve for the profit maximizing Q (label Q*) when P = 100. At this level of Q, calculate AFC, AVC, ATC, TFC, TVC, TC, TR and profits/losses. Should the firm shut down or continue to operate? Explain. Graph your calculations.
For a perfectly competitive market made up of firms represented in the graph below, what is...
For a perfectly competitive market made up of firms represented in the graph below, what is the long run equilibrium price of the good? Cost ($) 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....
Question 1 (3 points) MC ATC AVC QIQ2 03 04 05 Quant Answer the following questions...
Question 1 (3 points) MC ATC AVC QIQ2 03 04 05 Quant Answer the following questions with respect to the graph above: 1. The profit-maximizing quantity when price = P4 is at 2. Shade the region that represents total revenue when price = P4 3. The firm will decide to shut-down in the short-run, if the price fell below 4. The firm will decide to exit in the long-run, if the price fell below 5. The firm will earn zero-profits...
Firm B’s short-run cost function is: C = 12 - 2q + 3q2 + F Find...
Firm B’s short-run cost function is:
C = 12 - 2q + 3q2 + F Find the following: A. AFC B. AVC C. ATC D. MC E. At what output quantity is average total cost (ATC) minimized? Assume F = 63. F. At what output quantity does the MC curve cross the ATC and AVC curves? Assume F = 63 G. Graph the AFC, AVC, ATC and MC curves. Assume F = 63.
If a perfectly competitive firm is producing 150 units of output at a price of P=$20,...
If a perfectly competitive firm is producing 150 units of output at a price of P=$20, where the MC of the 150th unit of output is MC=$20, the ATC of the 150th unit is ATC=$10, and the AVC of the 150th unit is AVC=$8, then which of the following statements is not correct? a. The firm should shut down when the price is less or equal to $8. b. The firm is producing at the profit maximizing level of output....
a-what is the firm's maximizing output? b-what is the firm's profit? c- if the price drops...
a-what is the firm's maximizing output?
b-what is the firm's profit?
c- if the price drops below ? this firm will shut down
MC ATC AVC P=150 D=MR 120 104 1500 2400 3200 4800 6000 7400
D Question 7 1 pts Use the following graph that shows the marginal cost (MC) curve,...
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...
all of them
Question 1 (1 point) A firm producing a positive output level, covering variable costs but making a loss in the short run O may nonetheless be doing the nest it can with respect to its profits O should exit the industry O should definitely shut down O is not maximizing profits O should either expand or contract its plant size Question 2 (1 point) The perfectly competitive firm's profits can be calculated as O (MR-ATC)Q O (P-AVC-AFC)Q....
The following graph shows the demand and cost curves for a perfectly competitive firm. The profit-maximizing firm will: MC ATC // AVC Multiple Choice shut down. ο produce with short-run losses. O produce with long-run economic profits. ο produce with short-run economic profits.
Industry Firm SP MC ATC X -P=MR AVC 35.61. .. 10,000 10 16 18 Answer the following question based off of the graphs above, which depict a perfectly competitive industry and firm. Assume that fixed costs (FC) for the firm are $400: Does the firm continue to operate given the information presented in the graph? When would a firm shut down? The firm continues to operate in the short run; A firm would shut down in the short run if...
For a perfectly competitive market made up of firms represented in the graph below, what is the long run equilibrium price of the good? Cost ($) 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....
Question 1 (3 points) MC ATC AVC QIQ2 03 04 05 Quant Answer the following questions with respect to the graph above: 1. The profit-maximizing quantity when price = P4 is at 2. Shade the region that represents total revenue when price = P4 3. The firm will decide to shut-down in the short-run, if the price fell below 4. The firm will decide to exit in the long-run, if the price fell below 5. The firm will earn zero-profits...
Firm B’s short-run cost function is:
C = 12 - 2q + 3q2 + F Find the following: A. AFC B. AVC C. ATC D. MC E. At what output quantity is average total cost (ATC) minimized? Assume F = 63. F. At what output quantity does the MC curve cross the ATC and AVC curves? Assume F = 63 G. Graph the AFC, AVC, ATC and MC curves. Assume F = 63.
a-what is the firm's maximizing output?
b-what is the firm's profit?
c- if the price drops below ? this firm will shut down
MC ATC AVC P=150 D=MR 120 104 1500 2400 3200 4800 6000 7400
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...
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