. The level of output at which average variable costs equal marginal cost and averagerevenue, or the market price is:The ShutdowE output(b) The profit maximizing-level-of eutpue(c) The breakeven level of output() None of the above

There are different costs and revenues related to the production process. Average variable cost is…

Answered: . The level of output at which average…

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter10: The Firm And The Industry Under Perfect Competition

Section: Chapter Questions

Problem 4TY

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If the break-even volume is the quantity for which the overall cost will be considered as Break-even, then, the total revenue does not equal to the total cost. A. True B. False O True O False School plans for set up a summer program for students. The program assessment as follows: 1. fixed costs for classroom and advertisement: $225/program 2. variable costs for handouts: $20/student 3. the program registration fee: $35/student questions: how many students to attend this program for revenue to equal cost? A. 15 B. 40 C. 25
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The diagram shows the price, marginal cost and average cost curves facing a perfectly competitive firm in the short run. What is the total revenue of the profit maximising firm in the short run? a) R720 b) R800 c) R960 d) R2 000 20 2 Cost, price (Rand) MC I 100 60 80 Output per day AC AVC Price
Don't use chatgpt or any AI A profit-maximising firm in a competitive market is currently producing 1,000 units of output. It has average revenue of $50, average total cost of $40 and fixed cost of $10,000. a) What is its profit? b) What is its marginal cost? c) What is its average variable cost? Is the efficient scale of the firm more than, less than or exactly 1,000 units?
of Price, P (€); cost 8 3.70 Ni 2.50 2 0 0 20 40 60 80 160 140 120 100 Quantity of loaves, Q 180 Marginal cost curve 200 Isoprofit curve: €200 Isoprofit curve: €80 Firm's demand curve Zero-economic- profit curve (AC curve) The diagram shows a price-taking bakery's marginal and average cost curves, and its isoprofit curves. The current market price for bread is P*= 2.50. Which of the following statements is correct? Select one: a. If the market price rises to 3.70, the bakery's profit increases to 200. b. The bakery's supply curve is horizontal. c. The bakery maximises its profits when the price is equal to the average cost. d. The bakery maximises its profits by supplying 160 loaves. e. The bakery's profit is 200.
Quantity of commodity A per day Total Variable costs in U. 700 200 60.000 7-25 201 61.000 202 62.500 203 64.000 204 66.000 205 68.500 206 72.000 FO Use Table 1 above to answer question number 25 below New Generation is a perfectly competitive company selling commodity Y at the market price of OMR.500) New Generation Company has fixed costs of OMR 30.000/day and a daily variable cost schedule in Table 1 above. The profit maximizing level of output for New Generation Company is: a. 202 units per day. b. 204 units per day. 206 units per day. d. 205 units per day. 12292-
The economic profit is $3000, Total revenue is $5000, explicit cost is $800 Calculate implicit cost
$30 M ATO 20 AVC 15 75 80 100 Output 1-At which point the firm gets abnormal profit? 2- based on your answer in question one, what is the amount of total revenue? 3- based on your answer in question one, what is the amount of abonormal profit? 4-Find the value of Average Fixed cost at Q= 100 5- Determine the shutdown point? For the toolbar, press ALT+F10 (P) or ALT+FN+F10 (Mac).
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lawn-mowing services. Table Q2(a) sets out Lisa's costs and revenue at the market price of RM30 a lawn: Quantity (lawn per hour) Table Q2(a): Costs and Revenues of Lisa’s Lawn Company Marginal Revenue Total Total Cost (RM) Marginal Cost Revenue (RM) (RM) (RM) 30 1 30 30 40 10 60 90 30 30 55 15 3 75 20 4 120 30 100 25 5 150 30 130 30 6. 180 30 165 35 (i) Identify the quantity of lawn per hour that maximised the profit earned by the firm. (ii) Calculate the amount of Lisa's maximum profit in the short run. (iii) In the long run a firm in perfect competition makes normal profit which is equal to zero. Explain graphically how free entry and exit brings the economic profit back to normal profit.

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. The level of output at which average variable costs equal marginal cost and average revenue, or the market price is: The ShutdowE output (b) The profit maximizing-level-of eutpue (c) The breakeven level of output () None of the above