Long Run ATC is the minimum ATC from the given three short run ATC
Long Run Schedule | ATC |
10 | 7 |
20 | 6 |
30 | 5 |
40 | 4 |
50 | 4 |
60 | 3 |
70 | 4 |
80 | 5 |
90 | 6 |
100 | 5 |
110 | 7 |
120 | 1 |
For output between, 10 and 40, the firm should build plant A
For output between, 50 and 80, the firm should build plant B
For output between, 90 and 120, the firm should build plant C
QUESTION 3 Following are the short-run average-total-cost schedules for three plants of different sizes that a firm mig...
Table 1 shows the three short-run average total cost (ATC) curves for a firm with only three possible plant sizes: (1) Size 1, (2) Size 2, and (3) Size 3. Find the firm's long-run average cost (LRAC) curve and answer Questions 17- 21 on the basis of the information in Table 1 Table 1 Only Three Possible Plant Sizes Long-Run Average Cost Curve LRAC Size 1 Size 2 QI ATC 20 S0.95 30 40 50 60 70 Size 3 Size...
Saved The letters A, B, and C designate three successively larger plant sizes. In the long run the firm should use plant size "A" for: Output ATC-A ATC-C ATC-B $13 Goslao 00 DO Multiple Choice all possible levels of output. 10 to 30 units of output 30 to 60 units of output. all outputs greater than 40.
Size 1 Output ATC 10 $1.10 20 1.00 30 0.95 40 0.98 50 1.03 60 1.15 Size 2 Output ATC 20 $1.05 30 0.90 40 0.86 50 0.813 60 0.93 70 1.00 Size 3 Output ATC 40 $1.10 50 0.97 60 0.94 70 0.90 80 1.05 90 1.15 a. Use this information to set up a table showing the output levels and the ATC (Average Total Cost) amounts needed to draw the long-run average cost schedule (LRATC). (3pts.) b. Draw...
Question 36 O out of 2 points Exhibit 8-16 Short-run cost curves for a competitive firm 100 90 -MC Vd Cost per unit 70 ATC 60 50 (dollars) 40 30 20 10 AVC Quantity of output (units per hour) In Exhibit 8-16, the firm should shut down in the short run if the market price of its product falls below:
Consider the following table of long-run total cost for three different firms: Output (hypothetical units)1234567Firm "A" TC level$60$70$80$90$100$110$120Firm "B" TC level112439567596119Firm "C"' TC level2134496685106129Does each of these firms experience economies of scale or diseconomies of scale?
a) b) c) The graph below depicts an industry that has been monopolized. 120 110 S 100 90 80 PRICE ($) 70 60 50 — 40 30 20 D MR 1 1 - - - 20 30 50 60 70 40 OUTPUT If this market is in equilibrium, the price = and output = Is there any deadweight loss? (yes or no) If a monopoly raised the price to $80, the approximate output be . At this new price, would...
Use the following graph showing the average total cost curve for a perfectly competitive firm to answer the next question. $20 ATC 15 80 10 20 30 40 50 Quantity 60 70 At the long-run equilibrium level of output, this firm's total cost 10 Multiple Choice cannot be determined from the Information provided. Is $10. is $400 is $40.
Suppose the market for apples is perfectly competitive. The short-run average total cost and marginal cost of growing apples for an individual grower are illustrated in the figure to the right. 10- 9- Assume that the market price for apples is $5.50 per box. What is the profit-maximizing quantity for apple growers to produce? boxes. (Enter your response as an integer.) 8- C 7- MC co Price (dollars per box) 5- 4- ATC 3- 2- 1 O- 10 90 100...
QUESTION 2 A firm operating in a T-shirt business has a plant of fixed size and that it can vary its output only by varying the amount of labour it employs. The table below shows the firm’s data on the unit of labour employed and the total product (number of T-shirts) produced. Assume that the cost of labour, which is $50 per unit, is the only variable cost, and the total fixed cost is $100. No. of Labour Total Product...
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 _____...