4) Refer to Figure 13.3. This firm's marginal revenue will be positive at 5) Refer to Figure 13.3. This firm's marginal revenue will be negative at
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![Refer to the information provided in Figure 13.3 below to answer the questions
that follow.
Price per unit
10
87654
0
(Note: Point A is the midpoint
of the demand curve)
A
Demand
23456
Pounds of cheese at
At Point A the elasticity of demand is -1
Figure 13.3
4) Refer to Figure 13.3. This firm's marginal revenue will be positive at
5) Refer to Figure 13.3. This firm's marginal revenue will be negative at](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F34ea7d5e-5458-4654-a2b2-e2848352f669%2F8f823084-98e1-4c1a-b6aa-9c79a1088c2b%2F3hg26a_processed.png&w=3840&q=75)
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- Logout Successful Quiz Exam #2 (GRADED; 84-Point Max If a firm has total revenue of $100,000, the owner's labor in the firm is valued at $20,000, and the firm has explicit costs of $90,000, then the firm has earned a(n) negative economic profit of $10,000 O accounting profit of $20,000. economic profit of $10,000. O accounting loss of $10,000. 3 pt11. Refer to the table below Output Total Variable Cost Total Cost 012345678 $0 $100 $100. $200 $140 $240 $190 $290 $250 $350 $320 $420 $400 $500 $490 $590 $590 $690 Suppose the firm has maximized profit based on the market price at the output of 8 units. What is the marginal revenue earned from the eighth unit? A) $100 B) $90 C) $590 D) $110 E) $690Suppose that Redeye's Game Emporium is in a market with imperfect competition. The graph below shows the firm's demand (D), marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves. Determine the profit-maximizing level of output and the associated profit-maximizing price. Use the purple rectangle (diamond symbols) to shade the area that represents the firm's profit at this quantity. 2 2 2 2 2 2 2 2 2 2 - PRICE (Dofars per video game) 200 100 100 140 120 100 40 20 20 40 MR 1 88 60 10 100 120 140 160 180 200 QUANTITY (Thousands of Video games) D Profit Which of the following statements is correct at the point where the firm's average total cost (ATC) and the demand curve intersect?
- 7. The table presents total costs and total revenue at John's Cabbage Farm, a perfectly competitive firm. John receives a price $2,000 per ton of cabbage grown. Quantity (tons) I 2 3 4 5 6 Total cost (dollars) 1,000 2,500 5,000 8,500 13,000 18,500 Total revenue Quantity Marginal cost Marginal revenue (dollars) (dollars) (dollars) (tons) 2,000 I 4,000 2 3 6,000 8,000 10,000 12,000 5 6 a) Use the total cost and revenue information to complete the missing information in the table above. b) How many tons of cabbage should John grow and why?3. The components of marginal revenue Asim's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Asim initially produced seven trucks, but then decided to increase production to eight trucks. The following graph gives the demand curve faced by Asim's HookNLadder. As the graph shows, in order to sell the additional fire truck, Asim must lower the price from $100,000 to $50,000 per truck. Notice that Asim gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial seven engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial seven engines by selling at $50,000 rather than $100,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $50,000. PRICE (Thousands of dollars per fire engine) 275 250 Asim 225 200 175…Use the figure below to answer the following questions. Price and cost (dollars per unit) 100 90 85 80 70 55 40 0 MR₂ MC ATC La MR₁ 100 140 200 220 250 Quantity (units per week) Figure 13.2.3 Refer to Figure 13.2.3. Assume this firm faces demand curve D2. If the firm produces the efficient quantity, it makes zero economic profit. makes an economic profit. will face competition from new firms entering the industry. is in a long-run equilibrium. incurs an economic loss.
- 3. The components of marginal revenue Mo's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Mo initially produced four trucks, but then decided to increase production to five trucks. The following graph gives the demand curve faced by Mo's HookNLadder. As the graph shows, in order to sell the additional fire truck, Mo must lower the price from $105,000 to $90,000 per truck. Notice that Mo gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial four engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial four engines by selling at $90,000 rather than $105,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $90,000. PRICE (Thousands of dollars per fire engine) Mo Revenue Lost 120 Demand 105 Revenue…8. Short-run and long run effects of a shift in demand Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a quantity of 350 million cans per year. Suppose that WebMD daims that a protein found in tuna will increase your expected lifespan by 2 years. WebMD's claim will cause consumers to demand more PRICE (Dollars per cani producing more tuna and earning positive profit Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of WebMD's claim. ? 0 tuna at every price. In the short run, firms will respond by Supply Demand 70 140 210 200 350 420 400 560 630 700 QUANTITY (Millions of cans) Demand -0 Supply3. The components of marginal revenue Jabari's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Jabari initially produced five trucks, but then decided to increase production to six trucks. The following graph gives the demand curve faced by Jabari's HookNLadder. As the graph shows, in order to sell the additional fire truck, Jabari must lower the price from $60,000 to $40,000 per truck. Notice that Jabari gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial five engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial five engines by selling at $40,000 rather than $60,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $40,000. (a 6 ayad sopo spesi 0 Jabari 0 1 O True 2 False Demand 5 7 QUANTITY…
- 5. The following table presents the cost and revenue data for a firm: COSTS REVENUES Quantity Total Marginal Quantity Total Marginal Produced Cost Cost Demanded Price Revenue Revenue $25 $28 $32 $60 $54 1 1 $48 $42 $36 $30 $24 $18 $12 $37 $43 $50 3 3 4 4 5 5 $58 $67 $77 7 7 8 8 Complete the table above. What is the profit-maximizing output for this firm? a) 3 units b) 4 units c) 5 units d) 6 unitsFigure 6.1 MC ATC AVC MR2 MR, 3. 3. 3. 30 40 50 60 Quantity Refer to Figure 6.1. Given MR2, what is total revenue if the firm produces 60 units and the lowest point of the average-total-cost curve is $4? $400 $240 $440 $300 PriceQuestión 7 óf 20 The graph presents the costs and revenue for a purely competitive firm, where the market price is equal to $300 per unit of output. This firm has a fixed cost equal to $3,600. Use this information to determine the profit-maximizing output Cost and revenue $2,400 2,200 Marginal cost 2,000 and profit for this firm. 1,800 What is the profit-maximizing output of this purely Average total cost 1,600 competitive firm? Round your answer to the nearest 1,400 whole number. 1,200 1,000 800 600 Average variable cost profit-maximizing output: units of output 400 Enter numeric value 200 Marginal revenue What is the maximum level of profits for this purely 1 4 5 6 7 8 9 10 11 12 13 14 15 competitive firm? Round your answer to the nearest positive Unit of output or negative whole number. maximum level of profits: $ 3. 2.
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