(a) Find the total profit or total loss of the firm
shown in Figure 8.
(b) Is the firm not he short run or the long run?
(c) How much is the firm's most efficient output?
(d) What is the lowest price the firm would accept in the long
run?
Homework Answers
a)
Total Profit=0
profit=Tr-TC
Profit=(8-8)*12=0
b)
The firm is in the long run since the price is at the minimum of
the ATC.
c)
The firmsis most efficient output is at the minimum of the ATC ie
12 units of output.
d)
The lowest price the firm would accept in the long run would be
$8
Add Answer to:
(a) Find the total profit or total loss of the firm
shown in Figure 8.
(b)...
The figure is drawn for a monopolistically competitive firm. MC ATC 140 123.33 8 PRICE Demand...
The figure is drawn for a monopolistically competitive firm. MC ATC 140 123.33 8 PRICE Demand 90 56.67 MR 100 133.33 QUANTITY Refer to Figure 16-5. The quantity of output at which the MC and ATC curves cross is the long-run equilibrium quantity of output for the firm. short-run equilibrium quantity of output for the firm. efficient scale of the firm. profit-maximizing quantity.
The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a firm are shown in the figure to the right. The market price is $10.
5) Perfect Competition III The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a firm are shown in the figure to the right. The market price is $10. a. What is the firm's profit-maximizing output level? b. Will the firm produce in the short-run? Why or why not? c. If the firm is producing in the short-run, is it earning a profit [yes, no, or N/A]? What is the firm's profit or loss per unit? d. What is the firm's...
QUESTION 3 [20 Marks 1. Figure 1 illustrates the short-run profit/loss condition of a typical firm...
QUESTION 3 [20 Marks 1. Figure 1 illustrates the short-run profit/loss condition of a typical firm in a given market. Figure 1 MC ATC AVC 245 210 175 129 (a) Calculate the firm's total profit/loss. (b) Should this firm shut down in the short-run? Provide a reason for your answer. (c) What is this firm's shut-down price? d) What type of market stuctur is epreete tby igure 1? Consider the graph below, which indicates the demand and cost structures of...
33. In the figure above, a firm's total revenue and total cost curves are shown. Which...
33. In the figure above, a firm's total revenue and total cost curves are shown. Which one of the following statements is FALSE? a. Total profit is the vertical distance by which the total revenue curve exceeds the total cost curve. b. At output Q1, the firm makes zero economic profit. c. At an output above Q3, the firm suffers an economic loss. d. At output Q2, the firm suffers an economic loss. Price and cost (dollars per unit) 01...
Figure: A Profit-Maximizing Monopoly Firm Reference: Ref 13-2 Figure: A Profit-Maximizing Monopoly Firm (Figure: A Profit-Maximizing...
Figure: A Profit-Maximizing Monopoly Firm
Reference: Ref 13-2 Figure: A Profit-Maximizing Monopoly
Firm
(Figure: A Profit-Maximizing Monopoly Firm) Use Figure: A
Profit-Maximizing Monopoly Firm. This firm's cost per unit at its
profit-maximizing quantity is:
Select one:
a. $8.
b. $20.
c. $15.
d. $18.
We were unable to transcribe this imageP, MR MC, ATC $50 MC ATC 100 150 200 250 300 400 Quantity of output (per week) Reference: Ref 13-2 Figure: A Profit-Maximizing Monopoly Firm (Figure: A Profit-Maximizing Monopoly...
8. A perfectly competitive firm is earning an economic profit. In the short run it should...
8. A perfectly competitive firm is earning an economic profit. In the short run it should In the long run it should A. shut down; expand B. produce where MC = MR; leave the industry C. produce where MC = MR; expand production D. shut down; exit the industry 9. In the long-run equilibrium of a competitive market with identical firms, what is the relationship between price P, marginal cost MC, and average total cost ATC? A. P> MC and...
Help with 14-16 please. 14. A Monopoly: A. Will realize an economic profit if price exceeds...
Help with 14-16 please.
14. A Monopoly: A. Will realize an economic profit if price exceeds ATC at the profit-maximizing/loss-minimizing level of output. B. Will realize an economic profit if ATC exceeds MR at the profit-maximizing/loss-minimizing level of output c. Will realize an economic loss if MC intersects the down-sloping portion of MR D. Always realizes an economic profit. MC ATC AVC 15. At equilibrium, the profit-maximizing monopolist facing the situation shown in the graph above will face: A. Average...
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...
MC ATC MC ATC -D MR MR 0 0 (b) MC ATC D MR (c) 65....
MC ATC MC ATC -D MR MR 0 0 (b) MC ATC D MR (c) 65. Refer to the above diagrams, which pertain to monopolistically competitive firms. Short-run equilibrium entailing economic loss is shown by: A) diagram a only. B) diagram b only. C) diagram conly. D) both diagrams a and c. 66. Refer to the above diagrams, which pertain to monopolistically competitive firms. A short-run equilibrium entailing economic profits is shown by: A) diagram a only. B) diagram b...
QUESTION 15 The figure depicts a firm in a price-taker market. Use this figure to answer...
QUESTION 15 The figure depicts a firm in a price-taker market. Use this figure to answer the following question(s). Figure 9-19 MC ATC TI P = MR = a SHP=M 4, 9, 9 9 Refer to Figure 9-19. At the profit-maximizing level of output, the firm will earn an economic a. loss of BAIF. b. loss of CAGD c. loss of BAHE. d. profit of BAHE. d. profit of BAHE. QUESTION 16 The figure depicts a firm in a price-taker...
The figure is drawn for a monopolistically competitive firm. MC ATC 140 123.33 8 PRICE Demand 90 56.67 MR 100 133.33 QUANTITY Refer to Figure 16-5. The quantity of output at which the MC and ATC curves cross is the long-run equilibrium quantity of output for the firm. short-run equilibrium quantity of output for the firm. efficient scale of the firm. profit-maximizing quantity.
QUESTION 3 [20 Marks 1. Figure 1 illustrates the short-run profit/loss condition of a typical firm in a given market. Figure 1 MC ATC AVC 245 210 175 129 (a) Calculate the firm's total profit/loss. (b) Should this firm shut down in the short-run? Provide a reason for your answer. (c) What is this firm's shut-down price? d) What type of market stuctur is epreete tby igure 1? Consider the graph below, which indicates the demand and cost structures of...
33. In the figure above, a firm's total revenue and total cost curves are shown. Which one of the following statements is FALSE? a. Total profit is the vertical distance by which the total revenue curve exceeds the total cost curve. b. At output Q1, the firm makes zero economic profit. c. At an output above Q3, the firm suffers an economic loss. d. At output Q2, the firm suffers an economic loss. Price and cost (dollars per unit) 01...
Figure: A Profit-Maximizing Monopoly Firm
Reference: Ref 13-2 Figure: A Profit-Maximizing Monopoly
Firm
(Figure: A Profit-Maximizing Monopoly Firm) Use Figure: A
Profit-Maximizing Monopoly Firm. This firm's cost per unit at its
profit-maximizing quantity is:
Select one:
a. $8.
b. $20.
c. $15.
d. $18.
We were unable to transcribe this imageP, MR MC, ATC $50 MC ATC 100 150 200 250 300 400 Quantity of output (per week) Reference: Ref 13-2 Figure: A Profit-Maximizing Monopoly Firm (Figure: A Profit-Maximizing Monopoly...
8. A perfectly competitive firm is earning an economic profit. In the short run it should In the long run it should A. shut down; expand B. produce where MC = MR; leave the industry C. produce where MC = MR; expand production D. shut down; exit the industry 9. In the long-run equilibrium of a competitive market with identical firms, what is the relationship between price P, marginal cost MC, and average total cost ATC? A. P> MC and...
Help with 14-16 please.
14. A Monopoly: A. Will realize an economic profit if price exceeds ATC at the profit-maximizing/loss-minimizing level of output. B. Will realize an economic profit if ATC exceeds MR at the profit-maximizing/loss-minimizing level of output c. Will realize an economic loss if MC intersects the down-sloping portion of MR D. Always realizes an economic profit. MC ATC AVC 15. At equilibrium, the profit-maximizing monopolist facing the situation shown in the graph above will face: A. Average...
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...
MC ATC MC ATC -D MR MR 0 0 (b) MC ATC D MR (c) 65. Refer to the above diagrams, which pertain to monopolistically competitive firms. Short-run equilibrium entailing economic loss is shown by: A) diagram a only. B) diagram b only. C) diagram conly. D) both diagrams a and c. 66. Refer to the above diagrams, which pertain to monopolistically competitive firms. A short-run equilibrium entailing economic profits is shown by: A) diagram a only. B) diagram b...
QUESTION 15 The figure depicts a firm in a price-taker market. Use this figure to answer the following question(s). Figure 9-19 MC ATC TI P = MR = a SHP=M 4, 9, 9 9 Refer to Figure 9-19. At the profit-maximizing level of output, the firm will earn an economic a. loss of BAIF. b. loss of CAGD c. loss of BAHE. d. profit of BAHE. d. profit of BAHE. QUESTION 16 The figure depicts a firm in a price-taker...
Most questions answered within 3 hours.
-
A mass M = 10.0 kg falls through a height h = 1.00 m, whilst
attached...
asked 10 minutes ago -
2 H3BO3 (aq) + 3 Ba(OH)2 (aq) ---> Ba3(BO3)2 (aq) + 6 H2O
48.76 mL of...
asked 12 minutes ago -
Consider the reaction. 2A(g)↽−−⇀B(g)?p=1.17×10−5at 500 K If a
sample of A(g) A ( g ) at...
asked 10 minutes ago -
1.
Cybercrime:
a.
has been controlled by comprehensive federal legislation.
b.
is easy to detect.
c....
asked 11 minutes ago -
The retail price of a medium-sized box of a well-known brand of
cornflakes ranges from $3.14...
asked 15 minutes ago -
You want to freeze some homemade popsicles. You pour 0.24 kg of
juice at room temperature...
asked 24 minutes ago -
In a Hall-effect experiment, a current of 2.2 A sent
lengthwise through a conductor 1.1 cm...
asked 29 minutes ago -
Life Insurance: A life insurance company wants
to estimate the probability that a 40-year-old male will...
asked 36 minutes ago -
Consider the fission reaction 23592U+n→13351Sb+9841Nb+?n. Part A
How many neutrons are produced in this reaction? Part...
asked 32 minutes ago -
Find the maximum of x in the bottom quartile. (Round your answer
to four decimal places.)...
asked 45 minutes ago -
Which of the following computer languages is the easiest to
use?
A. Assembly language B. First-generation...
asked 40 minutes ago -
Suppose the number of patients per week that visit a health
center follows a Poisson distribution...
asked 42 minutes ago