(intel)CORE ISH$4036322824201612840Perfectly Competitive FirmMC04288 12 16 20 2420. What is the minimum price below which this firm will definitely shut-down production?(a) $4(b) $10O (c) $12(d) $14(e) $22Click Save and Submit to save and submit. Click Save All Answers to save all answers.Type here to searchStATCAVC32DQSave All Answers

A perfectly competitive market refers to market where a large number of buyers and sellers exist. All sellers are price-takers in the market. There is no selling cost in the market. All firms get a normal profit over the long run.Correct OptionOption : (b)The firm will shutdown its production facility if it does not get the minimum price. The price should not fall below the minimum point of AVC. If price falls below the minimum point of AVC, the firm will shut down its production facility. The minimum point of AVC is $ 10, therefore, the price should not fall below $10.Incorrect OptionsOptions: (A) (C) (D) and (E) are incorrect because these prices do not correspond to minimum level of AVC. Correct OptionOption : (b)

Answered: 20. What is the minimum price below…

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Economics

20. What is the minimum price below which this firm will definitely shut-down production? O(a) $4 O (b) $10 O (c) $12 (d) $14 O(e) $22

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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
Please see the attached4
Cost and revenues (dollars) P4 P₂ 0 Text Alternative b C d MC Break-even point (normal profit) Shutdown point (if P is below) Q₂ Q3 Q₁ Q₂ Quantity supplied ATC MR5 AVC MR4 MR3 MR₂ MR₁ Multiple Choice Question At which point will a firm be indifferent whether to shut down or continue to produce? O Point b O Point d O Point e O Point a O Point c
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Resources Submit All Question 9 of 30 The accompanying graph depicts the cost curves of an individual firm in a perfectly (or purely) competitive industry. a. Use the line labeled 'Supply' to trace out the firm's Short-Run supply curve. 20 Supply Marginal cost 19 18 17 16 Average total cost 15 14 13 Average variable cost 12 11 10 8. 7. 4 3. 2 15 21 24 27 30 33 36 39 12 46°F A 18 a 1O
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1. Consider a firm with the following cost and inverse demand functions. Cost($) 20 3 Cost Function N 3 quantity Price($) 16 13 30 10 Inverse Demand quantity (a) What are the average costs of producing 1, 2, and 3 units for this firm? (b) What are the marginal costs of producing first, second, and third units for this firm? (c) Does this firm enjoy either economies or diseconomies of scale? (d) What are the profits of producing 1, 2, and 3 units for this firm? (e) When does the firm maximize its profit? Select from producing 1, 2, and 3 units.
Average Average Output Variable Cost Total Cost 10 12 14 16 20 Multiple Choice O $4 $3 $5.00 4.00 These are cost data for an apple farm selling in a purely competitive market. The farm will produce if the price is at least equal to what minimum value? $9 $5 4.75 5.75 9.00 $15.00 13.00 11.50 9.00 12.00 Marginal Cost $3 4 6 9 14
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