21.The cost curves for an individual firm are given in the figure.In Figure (A), highlight the firm’s short-run supply curve.In Figure (B), highlight the firm’s long-run supply curve. The image comprises two graphs labeled (A) and (B) depicting cost curves in microeconomics, specifically focusing on Marginal Cost (MC), Average Total Cost (ATC), and Average Variable Cost (AVC) in relation to Quantity.### Graph (A)- **MC Curve**: This cyan upward-sloping curve represents the Marginal Cost. It indicates how the cost of producing one additional unit changes with quantity.- **ATC Curve**: The maroon curve, generally U-shaped, represents the Average Total Cost. It shows the per-unit cost, inclusive of fixed and variable costs, averaged over all units produced.- **AVC Curve**: The peach-colored curve, also U-shaped but positioned below the ATC, represents the Average Variable Cost, reflecting per-unit variable costs over quantities produced.### Graph (B)This graph mirrors Graph (A) with identical relationships:- **MC Curve**: Upward-sloping and intersects the ATC and AVC at their minimum points.- **ATC and AVC Curves**: Display similar U-shaped characteristics as in Graph (A), with the ATC positioned above the AVC.Both graphs emphasize key economic concepts: the MC curve intersects both the ATC and AVC curves at their minimum points, illustrating optimal production levels where economies of scale shift to diseconomies.

Here, given two graphs shows the marginal cost, average total cost and average variable cost curves.

Answered: 21.The cost curves for an individual…

21.The cost curves for an individual firm are given in the figure. In Figure (A), highlight the firm’s short-run supply curve. In Figure (B), highlight the firm’s long-run supply curve.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Answer the question on the basis of the following demand and cost data for a specific firm. Demand Data Cost Data (1) Price (2) Price (3) Quantity Output Total Cost $11.00 $10.00 6 6 $61 9.99 8.86 7 7 62 9.00 8.00 8 8 64 8.00 7.00 9 9 67 7.10 6.10 10 10 72 6.00 5.00 11 11 79 5.15 4.15 12 12 86 Suppose that entry into the industry changes this firm's demand schedule from columns (1) and (3) to columns (2) and (3). Economic profit will: a.decline to about zero b.increase by $10. c. fall by $10 d. fall by $6
Figure: Cost Curves for Corn Producers Reference: Ref 12-3 (Figure: Cost Curves for Corn Producers) Look at the figure Cost Curves for Corn Producers. The market for corn is perfectly competitive. If the price of a bushel of corn is $10, in the short run, the farmer will produce _____ of corn and earn an economic _____ equal to _____. 3 bushels; profit; loss, -$15 2 bushels; profit; $0 4 bushels; profit; just less than $80 per bushel 2 bushels; loss; just more than $80 per bushel
BEHIND THE SUPPLY CURVE: INPUTS AND COSTS The accompanying table shows a boat manufacturer’s total cost of producing boats.Quantity of Boats Total Cost 0 $450,000 1 $490,000 2 $510,000 3 $520,000 4 $540,000 5 $570,00 6 $610,000 7 $670,000 8 $750,000 9 $870,000 a.What is this manufacturer’s fixed cost?b.For each level of output, calculate the variable cost (VC). For each level of output except zero output, calculate the average variable cost (AVC), average total cost (ATC), and average fixed cost (AFC)Qty of boats Total Cost Variable Costs Average Variable Costs Average Total Costs Average Fixed Costs 0 $450,000 - - - -
Use the following data to analyze the condition when the product price is set at $56. A. How much would be the total revenue? B. What will be the profit-maximizing or loss-minimizing output? C. How much would be the total cost?
Consider a perfectly competitive market for a product Y and assume that the market is at the long run equilibrium. (a) Examine the cost structure and demand faced by an individual Y producer. Relate that producer to the Y market at the perfectly competitive long run equilibrium. Support with market and individual producer diagrams. (b) Analyze the effects of the following news on price and quantity in the Y market as well as the profit and output of the individual Y producer “It is discovered that consuming Y is beneficial to health and can prolong your life”. Explain both the short run and the long run equilibria and support your answers with suitable diagrams. Hi, I have the answer sheet but may I request for a more detailed explanation for part b? Thank you.
Behind the Supply Curve: Inputs and Costs Work It Out: Question 2 of 5 The accompanying table shows a car manufacturer's total cost of producing cars. Calculate the variable cost (VC) for the following quantities. VC for a quantity of 0: $ VC for a quantity of 5: $ VC for a quantity of 9: $ 0 Quantity of cars Total Cost $500,000 540,000 560,000 570,000 590,000 620,000 660,000 720,000 800,000 920,000 1,100,00 0 1 2 3 4 5 6 7 8 9 10
5. Profit maximization and shutting down in the short run The following graph plots daily cost curves for a firm operating in the competitive market for air fryers. PRICE (Dollars per thyer 8 & 0 Price (Dollars per fryer) 25.00 70.00 MC 100.00 ATC AVC Using the following table, for each price level, calculate the optimal quantity of units for the firm to produce. Using the data from the graph to determine the firm's total variable cost, calculate the profit or loss associated with producing that quantity. Assume that if the firm is indifferent between producing and shutting down, it will choose to produce. (Hint: Select purple points [diamond symbols] on the graph to receive exact average variable cost information.) QUANTITY (Thousands offers) Quantity Total Revenue Fixed Cost (Fryers) (Dollars) 30,000 (Dollars) 1,600,000 1,600,000 1,600,000 Variable Cost (Dollars) Profit (Dollars) If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's…
4. Total cost, average cost, and marginal cost in the short run Suppose Kenji runs a small business that manufactures frying pans. Assume that the market for frying pans is a price-taker market, and the market price is $20 per frying pan. The following graph shows Kenji's total cost curve. Use the blue points (circle symbol) to plot total revenue, and the green points (triangle symbol) to plot profit for the first seven frying pans that Kenji produces, including zero frying pans. TOTAL COST AND REVENUE (Dollars) 175 125 100 75 50 25 o $$ D 0 D 1 2 4 5 QUANTITY (Frying pans) Total Cost 7 Total Revenue Profit
a) What is the averge total cost at which this firm reaches its break even point b) what is the average variable cost at which this firm reaches it shut down point?
COURSE: ECONOMICS A competitive firm has a marginal cost function CM = 6 + 4q and market price is P = $12.a) What the firm's level of output?b) What producer surplus? Hint: graph and computec) Assume that Average Variable Cost is AVC = 6 + 2q and Fixed Costs FC = $6; does firm have a positive, negative or zero profit? Explain
The short-run supply curve for a price-taking firm is given by: Select one: a. its short-run marginal cost curve above average fixed cost b. its entire short-run marginal cost curve c. its short-run marginal cost curve above minimum average total cost d. its short-run marginal cost curve above minimum average variable cost e. the positively sloped portion of its average cost curve
ples of Microeconomics || Fall20 Homer's Holesome Donuts has determined that its profit-maximizing quantity is 10,000 donuts has two costs. First he pays $16.000 in annual rental payments for its five-year lease on its store. Second Homer incurs an additional cost of $5,000 for ingredients. Should Homer's shut down in the short run? per year. Homer's earns $12,000 in revenue from the sale of those donuts. Homer's of Select one: O a. Yes, because he cannot cover all of his fixed costs. O b. No, because he can cover all of his variable costs, O c. Yes, because he is incurring an economic loss. O d No, because is making positive economic profit, Next page 00 HUAWEI Nova 3 AI CAMERA