Output |
FC |
VC |
TC |
AFC |
AVC |
ATC |
MC |
0 |
10 |
10 |
- |
- |
- |
||
1 |
10 |
10 |
20 |
10 |
10 |
20 |
- |
2 |
10 |
18 |
28 |
5 |
9 |
14 |
18 |
3 |
10 |
23 |
33 |
3.33 |
7.66 |
11 |
5 |
4 |
10 |
33 |
43 |
2.5 |
8.25 |
10.75 |
10 |
5 |
10 |
48 |
58 |
2 |
9.4 |
11.6 |
15 |
6 |
10 |
68 |
78 |
1.66 |
11.33 |
13 |
20 |
7 |
10 |
98 |
108 |
1.42 |
14 |
15.42 |
30 |
8 |
10 |
148 |
158 |
1.25 |
18.5 |
19.75 |
50 |
1) The AVC curve is U-shaped with its minimum point at 7.66 and the ATC curve is also U-shaped with its minimum point at 10.75. The reason behind this shape is the because of the inverse U-shape of the APL curve. Now, the APL curve is of the inverse U-shape because of the Law of Diminishing Returns.
2) The MC curve is also U-shaped with its minimum point at 5. The reason behind this is again the Law of Diminishing Returns.
3) We know, MC crosses ATC and AVC at their minimum points, i.e. at ATC = 10.75 and AVC = 7.66.
4) ATC is higher than AVC because:
The minimum point of ATC > The minimum point of AVC
5) Costs are in the short run as firms are incurring a constant fixed cost of 10.
6) If the Company is operating in a perfectly competitive industry, it will earn zero/normal profits and produce the output where P = MC, i.e., 6 units. Now, if it raises the price, consumers will shift to other companies and it will incur losses.
7) For P = 30, equilibrium quantity = 7 units
8) Zero Profits and 4 units.
9) Characteristics of a Perfectly Competitive Industry:
Complete the following table and graph AVC, ATC, and MC. The best way to submit this assignment is by cutting and pasti...
Labor TVC TC MC AFC AVC ATC 25 50 75 100 25 125 (a) Complete the blank columns (5 points). Please create a table like mine and fill it. (b) Assume the price of this product equals $10. What's the profit-maximizing output (q)? (3 points). Note: managers maximize profits by setting MR=MC and under perfectly competitive markets, MR=Price. Thus, maximize profit by producing a where P=MC.(2 points) (c) What is the profit? (3 points) TOTAL COST (TC) - the...
help. agricultural economic
2. Use the following graph to answer the following questions: P/ MC ATC /AVC MR 20 2528 50 a. What price is charged by the monopol order to maximize profits? b. Calculate the total revenue accruing to the mo- nopolist at the profit-maximizing output. C. Calculate the total cost to the monopolist at the profit-maximizing output. d. Calculate the profit for the monopolist. e. Calculate the total variable and fixed costs of the monopolist at the profit-maximizing...
Find FC, VC, TC, AFC, AVC, ATC, and MC from the following table. Capital costs $50 per unit, and two units of capital are used in the short run. Labor costs $20 per unit. 7. Total Cost Average Average Marginal Variable Cost |(MC) Fixed Units of Units of Variable Average Fixed Labor (L) Cost (FC) Cost (VC) (TC) Total Cost Output (ATC) (Q) Cost Cost (AFC) (AVC) 0 0 1 2 2 4 3 6 4 8 10
Describe the shape of AFC(average fixed cost), AVC(Average Variable cost), ATC(Average total cost) and MC(Marginal cost) Explain graphic relationship among ATC, AVC and MC. I would be appreciated if the answered in 5senteces,
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...
1. Complete the table 2 . Plot ATC, AVC, and MC in one diagram. 3 . What is the shutdown price? 4. At a price of $18.8 how much should the firm produce to maximize profit? 5. At a price of $18.8 calculate its profit. please show me how you got the result not only the answer. thank you Q TFC TVC TC AVC ATC MC 0 30 NA NA NA 1 50 2 66 3 80 4 90 5...
3) Perfect Competition (5 points) The data in the table below are the monthly average variable costs (AVC), average total costs (ATC), and marginal costs (MC) for Alpacky, a typical alpaca wool-manufacturing firm in Peru. The alpaca wool industry is competitive.For each market price given below, give the profit-maximizing output level and state whether Alpacky's profits are positive, negative, or zero. Also state whether Alpacky should produce or shut down in the short run. a. If the market price is $22... i. what...
MC TVC AFC AVC ATC TC Output TFC $500 $200 1 2 $800 $75 $875 $925 $75 100 Refer to an above table. What is the average variable cost of producing three units of the output? $291.67 o $125 $100 $166.67 问题3 29 问题3 AVC ATC MC AFC Output TVC TC TFC $500 $200 $800 2 $75 $875 4 $925 5 100 $75 Which of the following is correct for this firm with the cost structure presented in the table...
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...
Each graph illustrates three short-run cost curves for firms, where ATC is average total cost (also referred to as average cost), MC is marginal cost, and AVC is average variable cost. Please classify each of the graphs as valid or invalid based on what you know about the relationships between these curves. Valid Invalid Answer Bank Graph A Graph F Graph E MC MC MC AVC AVC Cost Cost ATC ATC ATC AVC Output Output Output Graph C Graph D...