Homework Answers
25. Option C. $150
Explanation:
At 20 units, ATC = $16 and AVC = $8.5
So, TC = $16 * 20 = $320
TVC = $8.5 * 20 = $170
So, fixed cost = TC - TVC = $320 - $170 = $150.
26. Option C. $11
Explanation: In a perfectly competitive firm, the market price equals the marginal revenue.
Add Answer to:
The following figure represents relevant data for a firm in a perfectly competitive industry. Use it to answer the...
15. Use the following figure for a firm in a perfectly competitive market. a What is the output that maximizes...
15. Use the following figure for a firm in a perfectly competitive market. a What is the output that maximizes the firm's profit? b. At the profit-maximizing output, calculate total revenue and total cost. C. If the firm maximizes profit, how much profit does it earn? d. What will likely happen to market demand or market supply in the long run? e. What will likely happen to the market price in the long run? Price (s) d = P =...
The loss of a perfectly competitive firm which shuts down in the short run: Multiple Choice...
The loss of a perfectly competitive firm which shuts down in the short run: Multiple Choice O is equal to its total variable costs. O O ь is zero. гето. O is equal to its total fixed costs. cannot be determined. Refer to the diagrams, which show the demand and cost curves for a perfectly competitive firm producing output and the demand and supply curve for the industry in which it operates. Which of the following is correct? ATC AVC...
The following information is relevant for an individual firm operating in a perfectly competitive market. Output...
The following information is relevant for an individual firm operating in a perfectly competitive market. Output 30 Variable Cost $2,700 Fixed Cost $130 Marginal Cost $80 Price $80 What will be the firm's production decision in the short-run? Exit Operate Other firms will enter into the market Shutdown
6.[10 points) Answer the following questions. a. In a perfectly competitive industry, the industry demand and...
6.[10 points) Answer the following questions. a. In a perfectly competitive industry, the industry demand and supply curves are given by QD = 2,500-50P and Qs = 20P-300. Given the market conditions, graph the competitive firm's demand and marginal revenue curves. b. Graph a competitive firm that is earning economic profit. In your graph, indicate the level of profit by shading in the appropriate area. c. A perfectly competitive firm is selling 2,000 units at a price of $3, with...
The following information is relevant for an individual firm operating in a perfectly competitive market. Output...
The following information is relevant for an individual firm operating in a perfectly competitive market. Output 55 Variable Cost $4,000 Fixed Cost $200 Marginal Cost $40 Price $40 8 010256 What will be the firm's production decision in the short-run? Other firms will enter into the market Exit Operate Shutdown
[1] INote that AC in the Figure below is ATC] For the following perfectly competitive industry...
[1] INote that AC in the Figure below is ATC] For the following perfectly competitive industry (market) and firm below, assume that P1 $6.80, P2 $3.80, Q1 1200, and Q2 870. Calculate parts (a) (h) below: Indvidual firm Price Industry Price MC Ms AR-MR MS2 P1 AC P2 AR2 MR2 Md Industry Output QFirm's Output (a) At Demand/P1, Firm's Total Revenue (TR) (b) At Demand/P1, Firm's Average Total Cost (ATC) use AC on graph (c) At Demand/P1, Profit (T) (d)...
20. Which of the following statements is not a characteristic of a perfectly competitive firm? a....
20. Which of the following statements is not a characteristic of a perfectly competitive firm? a. Perfectly competitive firms view each other as fierce rivals. b. Firms are price-takers. c. All firms produce a homogeneous product. d. Perfectly competitive markets allow freedom of entry and exit. 21. Since the firm’s demand curve is perfectly elastic for a price-taking firm, a. P = MR. b. P = MRP. c. P = TR. d. both a and b. e. both a and...
1)In a perfectly competitive industry the market is in long-run equilibrium, when: Group of answer choices...
1)In a perfectly competitive industry the market is in long-run equilibrium, when: Group of answer choices a)P=MR=MC=AC b)P=MR=MC<AC c)P=MR=MC>AC d)P>MR=MC=AC 2)In order for a firm producing and selling kitchen tables to be operating at allocative efficiency, when price equals $800, marginal cost must equal _____. Group of answer choices a)$750 b)$800 c)$850 d)$700
Question: These diagrams, pertain to a perfectly competitive firm producing output q and the industry in...
Question: These diagrams, pertain to a perfectly competitive firm producing output q and the industry in which it operates. What should we expect in the long run on the number of firms, market supply and equilibrium price? MC ATC AVC MR P
A firm in a perfectly competitive industry is currently producing 150 units of output at a...
A firm in a perfectly competitive industry is currently producing 150 units of output at a price of $55 per unit. If marginal cost is equal to $50 and profit is equal to $500 at that level of output, what should the firm do, if anything, to maximize profit?
15. Use the following figure for a firm in a perfectly competitive market. a What is the output that maximizes the firm's profit? b. At the profit-maximizing output, calculate total revenue and total cost. C. If the firm maximizes profit, how much profit does it earn? d. What will likely happen to market demand or market supply in the long run? e. What will likely happen to the market price in the long run? Price (s) d = P =...
The loss of a perfectly competitive firm which shuts down in the short run: Multiple Choice O is equal to its total variable costs. O O ь is zero. гето. O is equal to its total fixed costs. cannot be determined. Refer to the diagrams, which show the demand and cost curves for a perfectly competitive firm producing output and the demand and supply curve for the industry in which it operates. Which of the following is correct? ATC AVC...
6.[10 points) Answer the following questions. a. In a perfectly competitive industry, the industry demand and supply curves are given by QD = 2,500-50P and Qs = 20P-300. Given the market conditions, graph the competitive firm's demand and marginal revenue curves. b. Graph a competitive firm that is earning economic profit. In your graph, indicate the level of profit by shading in the appropriate area. c. A perfectly competitive firm is selling 2,000 units at a price of $3, with...
The following information is relevant for an individual firm operating in a perfectly competitive market. Output 55 Variable Cost $4,000 Fixed Cost $200 Marginal Cost $40 Price $40 8 010256 What will be the firm's production decision in the short-run? Other firms will enter into the market Exit Operate Shutdown
[1] INote that AC in the Figure below is ATC] For the following perfectly competitive industry (market) and firm below, assume that P1 $6.80, P2 $3.80, Q1 1200, and Q2 870. Calculate parts (a) (h) below: Indvidual firm Price Industry Price MC Ms AR-MR MS2 P1 AC P2 AR2 MR2 Md Industry Output QFirm's Output (a) At Demand/P1, Firm's Total Revenue (TR) (b) At Demand/P1, Firm's Average Total Cost (ATC) use AC on graph (c) At Demand/P1, Profit (T) (d)...
Question: These diagrams, pertain to a perfectly competitive firm producing output q and the industry in which it operates. What should we expect in the long run on the number of firms, market supply and equilibrium price? MC ATC AVC MR P
Most questions answered within 3 hours.
-
B. If compound Y has approximately the same values of solubility
in toluene as compound X,...
asked 41 minutes ago -
Oscar Inc. has inventory in Japan valued at 39,051,000 Yen one
year ago. One year ago...
asked 48 minutes ago -
If Canada suffered from "fundamental disequilibrium," and its
government choose not to devalue its currency, a...
asked 56 minutes ago -
4. How many input & output Key Value Pairs are passed into,
and emitted out of...
asked 52 minutes ago -
Why would your heart not function well if constructed of
skeletal muscle? What is the particular...
asked 1 hour ago -
Please respond to this essay question in full essay form for
Chemistry 1102 Organic and Biochemistry:...
asked 1 hour ago -
Determine the head loss and velocity of flow in a water supply main
of 15.0 cm...
asked 1 hour ago -
A marketing executive who knowingly authorizes a shoddy
defective product to be brought to market is...
asked 1 hour ago -
Write a psudocode:
1. Define a function called authorize that takes in 2 strings,
uName, and...
asked 1 hour ago -
What Hall voltage (in mV) is produced by a 0.180 T field applied
across a 2.60...
asked 1 hour ago -
What mass of ethylene glycol (C2H6O2) must be added to 211.0 g
of water to obtain...
asked 1 hour ago -
Mary's employer has a defined benefits retirement plan, which
pay 3.2% of her last year's salary...
asked 1 hour ago