Homework Answers
Ans) the correct option is loss to making a profit
At the price of $5, there is a loss because ATC is above price. At price = $8, ATC is below price so the firm earns profit
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Exhibit 7-11 A firm's cost and marginal revenue curves -MC ATC 7 Cost, 6 revenues 5...
Exhibit 8-11 A firm's cost and marginal revenue curves In Exhibit 8-11, when the price is...
Exhibit 8-11 A firm's cost and marginal revenue curves In Exhibit 8-11, when the price is $5, the firm: Group of answer choices A. is making an economic profit of $21. B. should produce output equal to 10. C. is breaking even. D. should shut down. E. is having an economic loss but should continue as P>AVC. МC P MR = 8 8 АТC 7 6 Cost revenues 5 P MR 5 (dollars) 4 AVC 3 P MR 2 2...
Exhibit 8-9 A firm's cost and marginal revenue curves In Exhibit 8-9, product price in this...
Exhibit 8-9 A firm's cost and marginal revenue curves In Exhibit 8-9, product price in this market is fixed at $14. This firm is currently operating where MR = MC. What do you advise this firm to do? Group of answer choices A. This firm should shut down. B. This firm could increase profits by increasing output. C. This firm could increase profits by decreasing output. D. This firm should continue to operate at its current output. E. This firm...
Exhibit 7-17 Marginal revenue and cost per unit curves DMC ATC Price and costs per unit...
Exhibit 7-17 Marginal revenue and cost per unit curves DMC ATC Price and costs per unit (dollars) AVC 0 20 100 40 60 80 Quantity of output (units per day) 16. As shown in Exhibit 7-17, the price at which the firm earns zero economic profit in the short-runis a. $10 per unit. b. $15 per unit. c. $40 per unit. d. more than $20 per unit. e. $20 per unit. 17. In long-run equilibrium, the typical perfectly competitive firm...
The graph shows a firm's average total cost (ATC) and marginal cost (MC) curves. At what...
The graph shows a firm's average total cost (ATC) and marginal cost (MC) curves. At what output level does the firm have economies of scale? 12 11 10 MC ATC 9 8 Price $/Q 4 3 N 14 16 15 0 12 13 10 9 8 7 6 4 5 3 2 0 Quantity Quantit OQ > 4 OQ < 4 OQ> 8 OQ < 8
$ per unit MC ATC MR $40 AVC $20 2 4 6 8 10 12 Output (9) The graph above shows a firm's Marginal Revenue (MR), M...
$ per unit MC ATC MR $40 AVC $20 2 4 6 8 10 12 Output (9) The graph above shows a firm's Marginal Revenue (MR), Marginal Cost (MC), Average Total Cost (ATC) and Average Variable Cost (AVC). This firm is a profit-maximizing price taker. Find the firm's short run shutdown price. (Do not include a S sign in your response. Round to the nearest two decimal places if necessary.) Answer: Check
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5...
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5 1 1 1 ! сл 8 10 13 17 Q Use figure 2, which depicts the cost curves of a perfectly competitive firm to answer the following a)(3 points) When the market prices is $8, what is the firm's short run profit maximizing output? b) (3 points)At a market price of $8, is the firm earning positive, negative, or zero economic profit? c) (3...
Price, marginal revenue, marginal cost, average total cost $35.... ATC 29.. 26. MC 8 5 0...
Price, marginal revenue, marginal cost, average total cost $35.... ATC 29.. 26. MC 8 5 0 160 220 250 300 Quantity of output (per weok) a. The profit-maximizing monopoly firm maximizes their profit at equals to The firm in the above figure will produce units of output per week. b. This profit-maximizing monopoly firm's price per unit is c. This profit-maximizing monopoly firm's cost per unit at its profit-maximizing quantity is d. This profit-maximizing monopoly firm's economic profit per unit...
MC ATC Cost of Flashlights $12 $11 $10 $9 $8 $7 $6 $5 $4 $3 $2...
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 $
The curves show the marginal cost (MC), average variable cost (AVC) and average total cost (ATC)...
The curves show the marginal cost (MC), average variable cost (AVC) and average total cost (ATC) curves for a firm that sell mid-range cars in a competitive market. Use the area tool to draw the area representing the firms profit or loss, if the firm produce 6000 cars. Your answer should be a rectangle drawn with four corners
When the firm produce 6000 cars it earn a profit or suffer a loss of ----- million
A firm's ATC, AVC, MR, and MC curves are shown in the graph below. Profit-Maximizing Point...
A firm's ATC, AVC, MR, and MC curves are shown in the graph below. Profit-Maximizing Point Profit-Maximizing Point Economic Profit (shaded region) 54+ 48 IMR Cost and revenues AVC HHHHHHHHHHHHHHHHHHHHO 044 Reset 8 12 16 20 24 28 32 36 40 44 48 Output a) Draw the short-run profit-maximizing point and the economic profit region. Select which item you want to draw from the drop-down menu at the top of the graph to draw that item. b) What is the...
Exhibit 7-17 Marginal revenue and cost per unit curves DMC ATC Price and costs per unit (dollars) AVC 0 20 100 40 60 80 Quantity of output (units per day) 16. As shown in Exhibit 7-17, the price at which the firm earns zero economic profit in the short-runis a. $10 per unit. b. $15 per unit. c. $40 per unit. d. more than $20 per unit. e. $20 per unit. 17. In long-run equilibrium, the typical perfectly competitive firm...
The graph shows a firm's average total cost (ATC) and marginal cost (MC) curves. At what output level does the firm have economies of scale? 12 11 10 MC ATC 9 8 Price $/Q 4 3 N 14 16 15 0 12 13 10 9 8 7 6 4 5 3 2 0 Quantity Quantit OQ > 4 OQ < 4 OQ> 8 OQ < 8
$ per unit MC ATC MR $40 AVC $20 2 4 6 8 10 12 Output (9) The graph above shows a firm's Marginal Revenue (MR), Marginal Cost (MC), Average Total Cost (ATC) and Average Variable Cost (AVC). This firm is a profit-maximizing price taker. Find the firm's short run shutdown price. (Do not include a S sign in your response. Round to the nearest two decimal places if necessary.) Answer: Check
Figure 2: Short-run unit cost curves P MC ATC 15 AVC 12 11 9 8 5 1 1 1 ! сл 8 10 13 17 Q Use figure 2, which depicts the cost curves of a perfectly competitive firm to answer the following a)(3 points) When the market prices is $8, what is the firm's short run profit maximizing output? b) (3 points)At a market price of $8, is the firm earning positive, negative, or zero economic profit? c) (3...
Price, marginal revenue, marginal cost, average total cost $35.... ATC 29.. 26. MC 8 5 0 160 220 250 300 Quantity of output (per weok) a. The profit-maximizing monopoly firm maximizes their profit at equals to The firm in the above figure will produce units of output per week. b. This profit-maximizing monopoly firm's price per unit is c. This profit-maximizing monopoly firm's cost per unit at its profit-maximizing quantity is d. This profit-maximizing monopoly firm's economic profit per unit...
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 $
The curves show the marginal cost (MC), average variable cost (AVC) and average total cost (ATC) curves for a firm that sell mid-range cars in a competitive market. Use the area tool to draw the area representing the firms profit or loss, if the firm produce 6000 cars. Your answer should be a rectangle drawn with four corners
When the firm produce 6000 cars it earn a profit or suffer a loss of ----- million
A firm's ATC, AVC, MR, and MC curves are shown in the graph below. Profit-Maximizing Point Profit-Maximizing Point Economic Profit (shaded region) 54+ 48 IMR Cost and revenues AVC HHHHHHHHHHHHHHHHHHHHO 044 Reset 8 12 16 20 24 28 32 36 40 44 48 Output a) Draw the short-run profit-maximizing point and the economic profit region. Select which item you want to draw from the drop-down menu at the top of the graph to draw that item. b) What is the...
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