Homework Answers
"D"
The firm will continue to produce at the point were it is producing in the short run, as the firm continues to produce it is facing a loss as the price is less than total cost, in the long run it will shut down but not in the short run.
Add Answer to:
Help with #15 please. 15. Suppose a firm ina purely competitive market discovers that the price of its product is ab...
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....
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.
In the short run, a perfectly competitive firm is producing where MR-MC. At this output, P>AVC...
In the short run, a perfectly competitive firm is producing where MR-MC. At this output, P>AVC and P>ATC. This firm A) is making positive economic profits B) is making zero economic profits C) is making negative economic profits but should continue to operate D) is making negative economic profits and should shut down.
Sonya and Leah operate a small firm in a perfectly competitive market, the diagram illustrates its...
Sonya and Leah operate a small firm in a perfectly competitive
market, the diagram illustrates its MC, ATC, AVC and MR
curves.
1. What is their current average revenue per unit?
2. What is their profit maximizing level of output and
profit?
3. If the market clearing price drops to $10.00 per unit,
should they continue to produce in the short run if they wish to
maximize their economic profits (or minimize its economic losses)?
Explain.
4. What is their...
The graph contains the relevant cost curves for a perfectly (or purely) competitive firm. Move point...
The graph contains the relevant cost curves for a perfectly (or purely) competitive firm. Move point A on the graph to the shutdown point. 1,000 MC 900.0 ATC In order for the firm to earn positive economic profits the price of the good must be above what value? AVC price of a good: $ Price and cost What is the shutdown price for this firm? shutdown price: $ AFC 800.00 0 100 200 300 600 700 800 900 1,000 400...
A firm operating in a purely competitive environment is faced with a market price of $250....
A firm operating in a purely competitive environment is faced with a market price of $250. The firm’s total cost function (short run) is as follows: TC = 6000 + 400Q – 20Q2 + Q3 Should the firm produce at this price in the short run? If the market price is $300, what will total profits (losses) be if the firm produce 10 units of output? Should the firm produce at this price? If the market price is greater than...
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions:...
1) A perfectly competitive firm faces the following Total revenue, Total cost and Marginal cost functions: TR = 10Q TC = 2 + 2Q + Q2 MC = 2 + 2Q At the level of output maximizing profit , the above firm's level of economic profit is A) $0 B) $4 C) $6 D) $8 *Additional information after I did the math: The price this firm charges for its product is $10, the level of output maximizing profit is 4...
The permanent shut down point of a perfectly competitive firm, in the long run, is: Select one: a. the minimum poin...
The permanent shut down point of a perfectly competitive firm, in the long run, is: Select one: a. the minimum point of the MC curve. b. the minimum point of the AFC curve. c. the minimum point of the ATC curve. the minimum point of the AVC curve the minimum point of the AR curve. Spage Finish attempt W 4 5 6 7
Question 7 5 pts Let's say that you know the following information for an oligopoly firm:...
Question 7 5 pts Let's say that you know the following information for an oligopoly firm: Total Revenue equals $200 million. Variable Costs are $170 million. Fixed Costs equal $20 million. The firm is currently producing 2,000 products at the MC = MR point (and the MC curve is rising). What recommendation do you have for this firm? Assuming the firm's costs remain the same, the firm should produce fewer products in order to decrease its marginal costs. The profit...
7. A profit maximizing firm in a competitive market produces replica toy cars. Suppose the market...
7. A profit maximizing firm in a competitive market produces replica toy cars. Suppose the market price for replica toy cars decreases to $12. At the profit maximizing (loss minimizing) quantity of 20,000 toy cars, the ATC is equal to $15 and the AFC is equal to $5. Given these conditions the (x) firm will experience losses of $60,000 since price is less than average total cost. (y) the firm will continue to produce 20,000 toy cars since it would...
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....
In the short run, a perfectly competitive firm is producing where MR-MC. At this output, P>AVC and P>ATC. This firm A) is making positive economic profits B) is making zero economic profits C) is making negative economic profits but should continue to operate D) is making negative economic profits and should shut down.
Sonya and Leah operate a small firm in a perfectly competitive
market, the diagram illustrates its MC, ATC, AVC and MR
curves.
1. What is their current average revenue per unit?
2. What is their profit maximizing level of output and
profit?
3. If the market clearing price drops to $10.00 per unit,
should they continue to produce in the short run if they wish to
maximize their economic profits (or minimize its economic losses)?
Explain.
4. What is their...
The graph contains the relevant cost curves for a perfectly (or purely) competitive firm. Move point A on the graph to the shutdown point. 1,000 MC 900.0 ATC In order for the firm to earn positive economic profits the price of the good must be above what value? AVC price of a good: $ Price and cost What is the shutdown price for this firm? shutdown price: $ AFC 800.00 0 100 200 300 600 700 800 900 1,000 400...
The permanent shut down point of a perfectly competitive firm, in the long run, is: Select one: a. the minimum point of the MC curve. b. the minimum point of the AFC curve. c. the minimum point of the ATC curve. the minimum point of the AVC curve the minimum point of the AR curve. Spage Finish attempt W 4 5 6 7
Question 7 5 pts Let's say that you know the following information for an oligopoly firm: Total Revenue equals $200 million. Variable Costs are $170 million. Fixed Costs equal $20 million. The firm is currently producing 2,000 products at the MC = MR point (and the MC curve is rising). What recommendation do you have for this firm? Assuming the firm's costs remain the same, the firm should produce fewer products in order to decrease its marginal costs. The profit...
Most questions answered within 3 hours.
-
On a recent quiz, the class mean was 75 with a standard
deviation of 2.2. Calculate...
asked 4 seconds ago -
Discuss the Coefficient of Restitution in an elastic collision
compared to the Coefficient of Restitution in...
asked 4 minutes ago -
Pretend that you are
the audit manager on an annual financial statement audit engagement
for a...
asked 13 minutes ago -
A certain lens focuses light from an object 1.65 m away as an
image 41.8 cm...
asked 13 minutes ago -
Which metal has a resistivity that is within the range or
closest to 4.2X10^-6 to 4.7X10^-6...
asked 18 minutes ago -
5.) Suppose a researcher collected data on the mean height of
tomato plants grown in organic...
asked 30 minutes ago -
(b) A medical statistician wants to estimate the average weight
loss of people who are on...
asked 35 minutes ago -
In scala,
Can you explain what is the difference between them, and why the
first one...
asked 36 minutes ago -
True (T) or False (F) Questions
In a queuing system, if the system’s utilization is 100%,...
asked 45 minutes ago -
What is the total energy transported per hour along a narrow
cylindrical laser beam 1.60 mm...
asked 53 minutes ago -
Key Assessment PAT 6: Sayles Chapter 14 Application Exercise
2
Beginning January 1, Community Hospital had...
asked 59 minutes ago -
Let's assume the following data represents the time from when a
patient is discharged from North...
asked 1 hour ago